Christina Anderson thought her hotel room in Reykjavik, Iceland, was refundable. But when her flight to Iceland was canceled because of bad weather, she made a stunning discovery: It wasn’t.
Anderson, a retired nurse from West Lafayette, Indiana, booked her room at the Iceland Parliament Hotel through a travel website affiliated with Priceline, and she didn’t realize that all rooms were nonrefundable.
Check out Elliott Confidential, the newsletter the travel industry doesn’t want you to read. Each issue is filled with breaking news, deep insights, and exclusive strategies for becoming a better traveler. But don’t tell anyone!
“Now I’m out over a thousand dollars for a trip I couldn’t take,” she said. “I’ll never make that mistake again.”
But anyone could make that mistake. With airlines, hotels, and booking platforms tightening their refund rules, consumers are finding it more challenging than ever to get their money back, even when circumstances are beyond their control.
“2025 is shaping up to be the year of no refunds – and no exceptions,” said Charlie Neville, a marketing director at JayWay Travel.
No one knows the exact extent of travel nonrefundability today because travel companies don’t release that information. 
But we can connect the dots. The travel insurance platform Squaremouth reports an 18 percent rise in paid claims this year compared to 2024, with total payout amounts jumping by 37 percent, to $2,609. Notably, over 40 percent of these claims involved trips that were canceled or cut short, like Anderson’s. 
Neville said he’s noticed many boutique and family-run hotels, especially in high-demand spots like Dubrovnik, Prague, and Santorini, booking out earlier than ever, requiring full deposits up front, and enforcing strict cancellation policies. And based on the consumer complaints I’ve received at my nonprofit advocacy organization, I can also confirm that more travel products are becoming nonrefundable, perhaps not coincidentally in time for the busy summer travel season.
You might be tempted to blame greed for the nonrefundability crisis. It’s not that simple. Here’s what’s driving this trend:
But there’s a way to avoid losing everything on a nonrefundable purchase.
The easiest way to avoid getting stuck with a worthless ticket, room or car is to avoid anything nonrefundable. The cost savings for hotels and car rentals are negligible, anyway. For example, when car rental companies offer a “prepay” rate, you’re only looking at a 10 percent savings, at best – but a lot more risk.
“With car rental, it rarely benefits customers to prepay,” said Mark Mannell, CEO of CarRentalSavers.com. He said that’s particularly true during the summer, when many locations run out of cars. Often, rental companies are hesitant to refund the prepaid rate, even when they can’t give you a car. 
Talk about a “lose-lose” proposition.
With airlines, it’s a little harder. But the good news is the price difference between a refundable ticket and a nonrefundable one has been shrinking lately, so it might be more affordable than you think. Just avoid the cheapest fares – the “basic economy” class tickets, which are the most restrictive.
You can also ask for an exception to the strict refund policy.
“Negotiate for a travel credit,” advised Laura Barlow, a travel advisor with Explore the Magic Travel. “Depending on the supplier, most would work with the client or travel advisor to issue a credit for a future trip. In these times, my policy is that it never hurts to ask.”
She’s right. Even though travel companies love to put their terms in ironclad contracts, the truth is, there’s usually a manager on the other end who can make a deal – if you ask nicely.
There’s one more way around the problem of nonrefundability: travel insurance. 
“Many travel insurance policies will provide a refund of these expenses in many instances,” said Andrew Jernigan, CEO of Insured Nomads, “Especially when you can get a ‘cancel for any reason’ benefit included in your policy.”
For example, Berkshire Hathaway Travel Protection’s (BHTP) “cancel for any reason” option will allow you to recover up to 50% of your nonrefundable trip payments if you need to cancel for reasons that fall outside of typical covered events. 
“It’s a way to protect yourself if your plans change unexpectedly and you need to cancel for reasons not covered in the standard policy,” said Carol Mueller, BHTP’s head of marketing.
However, you may also be covered under a regular travel insurance policy. For instance, TravelSafe’s Classic policy provides $2,500 for common carrier delays that result in an arrival more than three hours after the scheduled arrival if they cause a loss of prepaid land arrangements.
Travel insurance will also add to the cost of your vacation – about 8% to 10% of your prepaid nonrefundable expenses, and you’ll pay extra for a “cancel for any reason” option (as much as 12% of your trip cost). 
It is the best way around the nonrefundability problem, though, and it would have definitely rescued Anderson’s vacation in Iceland. 
Priceline contacted the hotel on Anderson’s behalf to ask about a refund, but it refused. The online agency offered her a 10% discount on a future booking, which she also refused.
We had better get used to the idea that everything in travel will apparently be nonrefundable sooner or later. This summer has proven that the travel industry’s ultimate goal is: no refunds.
That’s the wrong approach. Life can be unpredictable and plans can change. One hotel owner confided that he knows 10 percent of the guests who book his nonrefundable rooms will have to cancel. And when that happens, he gets to keep their money and resells the room. Cha-ching!
The best way to fight this may be to push back. Buy the refundable ticket or the refundable room – and send a message that nonrefundable travel is not a consumer-friendly option, no matter the discount.
Christopher Elliott is an author, consumer advocate, and journalist. He foundedElliott Advocacy, a nonprofit organization that helps solve consumer problems. He publishesElliott Confidential, a travel newsletter, and theElliott Report, a news site about customer service. If you need help with a consumer problem, you canreach him here or email him at chris@elliott.org.

source