Refundable vs non-refundable tickets: which to pick

A refundable ticket promises peace of mind — cancel the flight and get your money back — but that peace of mind has a price. A non-refundable ticket is often two to three times cheaper, though you risk losing the money if your plans change. The right choice can save a large sum, so it's worth understanding what each type means and when to pick which.

The three ticket types

At the basic level, tickets fall into three groups, and confusing them is expensive:

• Non-refundable: the cheapest; on cancellation you can't get the money back, often only the tax portion or a voucher
• Changeable: you can change the date for a fee or free, but the money isn't returned to you
• Refundable: the most expensive; on cancellation you get the full amount back, usually with no conditions

The price difference

The gap is often shocking. On the same flight a refundable ticket can be 2-4 times more expensive than a non-refundable one. For example, if a non-refundable European ticket is $150, the refundable version on the same flight could be $350-500. You pay that difference for one right — the right to get your money back — which you may never even use.

When a refundable ticket is worth it

• Your plans are vague — the trip depends on unconfirmed leave or a work meeting
• The ticket is expensive — the risk of losing money on a long intercontinental flight is high
• Health or family circumstances are unstable and there's a real chance of cancellation
• A strict deadline — you can't afford the flight to 'burn' and the money to be lost

Read the fine print

'Non-refundable' doesn't always mean 'total loss.' Many airlines still give such tickets a voucher or credit balance for a future flight — often minus a small fee. So before buying, always read the fare rules: they say whether a change is possible, what it costs and whether a credit remains.

How to save money

In most cases a cheap, non-refundable ticket plus good travel insurance is better value than an expensive refundable fare. If you can't decide yet, use a fare hold service — for a small fee you lock the price for a few days before committing. Also keep in mind that the cheapest basic economy fare often allows no changes at all.

Find the best price with Travel365

Before you pick a fare type, compare prices — the Travel365 price calendar makes it easy to see how much the cost rises by date, and a flexible date often gives you the same savings a refundable ticket would, without the extra spend. For more ideas see the common flight-booking mistakes.