Booked flight too soon? MakeMyTrip to refund fare difference if price drops | Personal Finance
=Have you ever booked a flight and then checked the same fare a few days later, only to discover that the ticket has become cheaper? MakeMyTrip is now offering travellers a way to protect themselves against that post-booking price drop.
The travel booking platform on Monday launched Price Drop Protection, an optional add-on that refunds eligible travellers the difference if the fare of their booked flight falls after they have made the booking.
The feature is available on domestic and international flights, as well as one-way and round-trip bookings. MakeMyTrip currently lists the feature as an add-on during flight booking.
“Travellers should not have to choose between booking early and worrying that fares may fall later. Price Drop Protection lets them book when it works for them, with the reassurance that if the fare drops, they are protected. It is a simple way to offer more flexibility and peace of mind while planning a trip,” said Raj Rishi Singh, COO, Flights, Corporate, GCC and Marketing, MakeMyTrip.
How does Price Drop Protection work?
Suppose you book a domestic flight for ₹8,000 and add Price Drop Protection. If the eligible fare subsequently falls to ₹6,500, the difference is ₹1,500.
Under the protection, you could receive that ₹1,500 difference, subject to the applicable terms and the maximum refund limit.
For domestic flights, the maximum refund is ₹2,500 per passenger, while the maximum for international flights is ₹3,000 per passenger.
The protection applies from the time of booking until six hours before the scheduled departure. MakeMyTrip’s current website says that if the fare falls during the eligible period, the traveller can claim the refund after completing the journey and within 30 days of the departure date.
The refund is credited to the traveller’s original mode of payment, according to the company’s announcement.
How much does the protection cost?
The add-on starts at:
₹229 per passenger for domestic flights
₹349 per passenger for international flights
This is an additional cost over the flight fare.
For example, suppose a traveller books a domestic flight for ₹10,000 and pays ₹229 for Price Drop Protection.
If the eligible fare subsequently falls by ₹1,500, the traveller could potentially recover the ₹1,500 difference, subject to the applicable conditions.
If the fare does not fall, however, the traveller has paid ₹229 for the protection without receiving a fare-difference refund.
What if the fare falls by ₹4,000?
This is where the maximum refund becomes important.
Suppose you buy an international ticket for ₹30,000 and the eligible fare subsequently falls by ₹4,000.
The maximum protection available is ₹3,000 per passenger, so the refund would be capped at ₹3,000 rather than covering the entire ₹4,000 difference.
For a domestic booking, the corresponding maximum is ₹2,500.
Travellers should therefore not interpret the feature as an unlimited guarantee that they will always receive the full difference between their original fare and the lowest subsequent fare.
Does it mean you should always book early?
Not necessarily.
The protection is designed to reduce the risk of booking early, rather than guaranteeing that booking early will always be cheaper.
For example, imagine a traveller is planning a Delhi-Bengaluru trip three months ahead.
The current fare is ₹7,000. The traveller expects the fare could fall but is also concerned it could rise closer to the departure date.
With Price Drop Protection, the traveller can choose to book at ₹7,000 and pay the additional protection fee. If the eligible fare later falls, the traveller may receive the difference, subject to the refund cap and terms.
The traveller therefore doesn’t have to make the decision based solely on whether the fare will fall after booking.
However, the protection comes at a cost, and travellers should factor that fee into their overall travel budget.
What about international travel?
The feature also applies to international flights.
Suppose a traveller books a Delhi-Singapore ticket for ₹25,000. A few weeks later, the eligible fare falls by ₹2,000.
The traveller could receive the ₹2,000 difference, assuming the booking meets the eligibility criteria and the claim is made within the specified period.
If the fare falls by ₹3,500, the maximum refund would be ₹3,000 per passenger.
For a family of four, the maximum international refund could therefore amount to ₹12,000, assuming each passenger is eligible and the maximum refund applies to each booking passenger.
Don’t confuse Price Drop Protection with Price Lock
MakeMyTrip already offers a Price Lock feature, but the two products address different situations.
With Price Lock, a traveller can hold a flight fare for a specified period while deciding whether to complete the booking. If the fare rises during that period, the traveller retains the locked price; if the fare falls, the traveller pays the lower fare.
Price Drop Protection works after the ticket has been issued.
In other words:
Price Lock: I haven’t booked yet, but I want protection while I decide.
Price Drop Protection: I’ve already booked, but I don’t want to lose out if the fare falls later.
This distinction is important when deciding which add-on, if any, is useful for a particular trip.
What should travellers check before paying for it?
The biggest thing to check is the terms and conditions, particularly how the eligible fare is determined and how a price drop is established.
Travellers should also consider the cost of the add-on against the probability and potential size of a fare reduction.
For instance, paying ₹229 to protect a ₹3,000 domestic fare may make less sense to someone booking a very low-cost ticket than for someone booking an expensive peak-season flight where the potential fare movement is larger.
The refund ceiling also matters.
A traveller expecting a ₹5,000 fare reduction on a domestic ticket will not be protected beyond the ₹2,500 per-person cap.
