American Express has introduced an expanded "cancel for any reason" option for flights, allowing cardholders to secure up to 75% reimbursement for nonrefundable tickets. This feature, known as Trip Cancel Guard, is now available for flights booked outside of AmexTravel.com, including direct airline bookings and third-party platforms like Expedia or Kayak. This change offers greater flexibility and peace of mind for a wider range of travelers.
Key Takeaways
- Amex Trip Cancel Guard now covers flights booked anywhere, not just AmexTravel.com.
- Travelers can get up to 75% reimbursement for nonrefundable flight costs.
- Coverage must be purchased at least 5 days before departure and within 30 days of booking.
- The fee for this coverage ranges from approximately 8% to 10% of the flight cost.
- It is particularly beneficial for basic economy tickets, offering a refund instead of a travel credit.
Expanded Availability for Trip Cancel Guard
The ability to purchase Trip Cancel Guard has become more accessible. Eligible American Express cardholders in the U.S., including consumer, business, and corporate accounts, can now add this coverage at various stages. If booking directly through AmexTravel.com, the option appears at checkout. For flights booked elsewhere, such as directly with an airline or through platforms like Kayak, cardholders can purchase the coverage on the Amex website, provided the flight was booked within the past 30 days.
There are specific requirements for purchasing this add-on. The coverage must be secured at least 5 days before the scheduled flight departure. This means it is not suitable for last-minute travel plans. Additionally, Trip Cancel Guard applies only to cash bookings. Flights purchased with airline miles or existing travel vouchers are generally not eligible. An exception exists for Business Platinum Card holders who use Membership Rewards points through AmexTravel.com's Pay With Points program.
"A recent AmexTravel.com survey found that just over one-third of adults have canceled or rebooked a trip due to unexpected events," said Anthony Cirri, Executive Vice President and General Manager, U.S. Consumer Cards at American Express. "Expanding the ways Card Members can purchase Trip Cancel Guard will give them the flexibility and confidence to adapt their plans with ease."
Fact Check
Approximately 33% of adults have canceled or rebooked a trip due to unforeseen circumstances, highlighting the demand for flexible travel options.
Understanding the Cost of Trip Cancel Guard
The fee for Trip Cancel Guard is calculated as a percentage of the total flight cost, which includes all taxes and fees. This percentage can vary depending on where and when the coverage is purchased. For bookings made directly on AmexTravel.com, the add-on typically costs around 8% of the fare. This pricing is comparable to other "cancel for any reason" travel insurance policies available in the market, which often cover more than just flights.
If purchasing Trip Cancel Guard for a flight booked outside of AmexTravel.com, the cost is slightly higher, generally around 10% of the flight price. For these external bookings, the flight must cost a minimum of $300 to be eligible for the coverage. With Trip Cancel Guard, travelers can cancel their flight for any reason up to two full calendar days before departure. They may then receive reimbursement for up to 75% of the nonrefundable flight expenses, provided the airline does not issue a travel credit instead.
One notable aspect of Trip Cancel Guard is its ability to cover change or cancellation fees imposed by airlines. These fees can sometimes amount to hundreds of dollars, depending on the airline and the specific fare class. The benefit allows travelers to recover these costs, offering additional financial protection.
Amex Platinum Card Benefits
The Platinum Card from American Express offers 5x points on flights booked directly with airlines or via AmexTravel.com, up to $500,000 spent per calendar year. This provides an estimated 11% return based on a 2.2 cents per point valuation for Membership Rewards.
Is Trip Cancel Guard a Worthwhile Investment?
For many travelers, the value of Trip Cancel Guard depends on the type of airfare purchased. Most airlines will issue a travel credit if a Main Cabin fare or higher is canceled. This allows the ticket's value to be used for a future trip. In such cases, Trip Cancel Guard might not be worth the additional expense, as travelers would likely receive a travel credit anyway, making them ineligible for an Amex reimbursement claim.
However, the coverage becomes particularly appealing for basic economy tickets. These fares often come with strict conditions, including limited or no seat selection, high change or cancellation fees, and restrictions on carry-on luggage. Many basic economy tickets do not offer a future travel credit upon cancellation. This is where Trip Cancel Guard can provide significant value.
Basic Economy Scenarios
Consider a flight example: an American Airlines flight from Phoenix (PHX) to New York (JFK) costs $189 for basic economy and $239 for Main Cabin. The $50 difference allows for seat selection and the flexibility of a future travel credit with the Main Cabin fare. If a traveler opts for the $189 basic economy fare, purchasing Trip Cancel Guard would cost approximately $15 (based on the 8% to 10% fee range). This is significantly less than the $50 difference to upgrade to Main Cabin.
With Trip Cancel Guard, the traveler can cancel the basic economy flight for any reason up to two days before departure. If the claim is approved, they could receive up to $141.75 back (75% of $189) to their original form of payment. This is a crucial distinction, as receiving a cash refund offers greater flexibility compared to an airline voucher, which is often restricted to a single airline and has an expiration date.
- Main Cabin Fares: Often include flexibility for future travel credit, making Trip Cancel Guard less essential.
- Basic Economy Fares: Typically lack flexibility, making Trip Cancel Guard a strong option for securing a refund.
Travelers who prioritize cheap fares and are not concerned with airline elite status might find Trip Cancel Guard a valuable tool. Airlines typically offer reduced earning rates for elite status on basic economy fares, or sometimes no elite-qualifying points at all. For those who consider themselves "free agents" and seek the lowest prices, adding Trip Cancel Guard to a basic economy ticket can provide cancel-for-any-reason coverage at a reduced overall cost.
Final Considerations for Travelers
Trip Cancel Guard is a reasonably priced add-on available to Amex cardholders. It offers "cancel for any reason" coverage for flights, providing up to 75% reimbursement to the original form of payment. This can offer considerable peace of mind, especially for travelers with unpredictable schedules or those who want maximum flexibility.
However, it is important to evaluate its value based on the specific flight purchase. For Main Cabin fares or higher, which often include the option for a future travel credit upon cancellation, the added cost of Trip Cancel Guard may not be justified. The benefit truly shines when applied to basic economy fares or flights on low-cost carriers. These tickets frequently come with strict no-change or no-cancellation policies, or steep fees, making the ability to secure a 75% refund to the original payment method a significant advantage.
Before purchasing, cardholders should review the terms and conditions, including the 30-day booking window and the 5-day pre-departure requirement. Understanding these details ensures that the coverage meets individual travel needs and expectations.
