Travelers are encountering a worrisome trend in 2025: airlines and hotels are increasingly bringing back non‑refundable bookings, rolling back the flexible cancellation policies that became common in recent years.
This shift means trip planning is becoming riskier and potentially more expensive for consumers.
Many carriers and hotel chains that once allowed easy changes or cancellations are now emphasizing rock-bottom fares and rates that cannot be canceled or changed without penalty, leaving travelers on the hook if plans change.
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The Comeback of Non‑Refundable Bookings
During the height of the pandemic, many travel providers introduced generous flexibility – waiving change fees and offering refunds or credits – to entice wary customers.
Now, with travel rebounded, those perks are quietly disappearing. Industry experts say companies have been pivoting back to strict, non-refundable policies as a way to stabilize revenue after years of disruption.
“Airlines, hotels, and rental car companies shifted to nonrefundable policies to manage risk and stabilize their revenue streams during the pandemic,” explains John Rose, chief risk officer at travel firm Altour.
This trend is “particularly noticeable now, with the travel industry trying to rebuild after massive disruptions over the past few years”.
In other words, 2025 is shaping up to be the year of no refunds — and no exceptions, as one travel company executive put it.
Travel companies are openly steering customers toward non-refundable options.
New AI-driven pricing models let airlines and hotels tweak fares and rates in real time, often dangling a small discount (sometimes around 10% off) if you agree to give up your right to a refund.
For example, many hotels will knock a bit off the nightly rate in exchange for a “prepaid” booking that absolutely cannot be canceled – knowing that if you do cancel, they keep your money and can likely resell the room.
According to André Disselkamp of Insurancy, this is a win-win for the companies: a non-refundable ticket or room “may seem like a good deal for you, but it’s always a great deal for the company,” since if your plans change, the company keeps all of your money.
Early evidence suggests this shift is well underway. Travel insurance claims have surged as more people find themselves unable to get refunds from providers.
Squaremouth, a travel insurance marketplace, reports an 18% rise in paid travel insurance claims this year compared to 2024, with total payout amounts jumping 37%.
Notably, over 40% of those claims involved trips that were canceled or cut short – precisely the scenarios where travelers lost money on non-refundable bookings.
Travel advisors also observe that many boutique hotels in popular destinations (from Dubrovnik to Santorini) are fully booking up early with strict deposit requirements and zero-flexibility cancellation policies.
In short, non-refundable deals are back in force, just as the world’s appetite for travel returns.
Why It Matters for Travelers
For travelers, the return of widespread non-refundable booking policies raises the stakes on every trip.
Flexibility is losing ground, and the cost of an unexpected change can be brutal.
One American traveler learned this the hard way when her flight to Iceland was canceled due to bad weather – only then did she discover her prepaid hotel in Reykjavík was non-refundable. “Now I’m out over a thousand dollars for a trip I couldn’t take,” she lamented, vowing never to make that mistake again.
Her story is increasingly common. With airlines and hotels tightening refund rules, consumers are finding it harder than ever to get their money back, even when events outside their control derail a trip.
The risk calculations for trip planning have fundamentally changed. Travelers must now decide whether a small upfront savings is worth 100% financial loss if something goes wrong.
This comes at a time of continued uncertainty – from sudden pandemics or natural disasters to personal emergencies – which means the likelihood of needing to cancel a trip is never zero. “Life can be unpredictable and plans can change,” one hotel owner admitted, who noted that he expects about 10% of guests who book his nonrefundable rooms will have to cancel.
When they do, he keeps their full payment and simply resells the room to someone else – a quick profit for him, but a total loss for the unlucky guest.
There’s also a wider impact on traveler behavior. Some industry watchers suspect that as more consumers get burned by strict policies, they will start gravitating toward airlines or hotels that offer more flexibility – or at least factor in the added cost of travel insurance.
Non-refundable deals might also shift demand toward higher-priced refundable rates for those unwilling to take the gamble, effectively making truly flexible travel more of a premium product.
In an uncertain global context, the ability to change or cancel plans is increasingly valued – yet it’s becoming harder to obtain without extra cost.
Refundable vs. Non‑Refundable: The New Travel Gamble
Travel experts are calling it the “nonrefundable gamble”: a delicate choice between saving a bit of money now or safeguarding your wallet against the unexpected.
In today’s market, the difference in price between a non-refundable booking and a refundable one is often relatively small – sometimes as little as 5-15% more to keep your refund option open.
Consumers must weigh that savings against the potential risk of losing everything if plans change. Below are some guidelines on when each option might make sense:
- Play It Safe – Book Refundable: Opt for refundable fares and rates if your plans are uncertain, far in the future, or subject to change. This is especially important if the non-refundable discount is minimal (say, under ~10%). Travelers without travel insurance or those traveling during volatile times (e.g. uncertain public health or weather conditions) should strongly consider paying extra for flexibility.
- Take the Gamble – Book Non-Refundable: A non-refundable deal might be worth it only if your plans are absolutely set in stone and the savings are significant enough to justify the risk. It also helps if you have a backup like “Cancel For Any Reason” insurance coverage (see below) to recoup some losses. In all cases, double-check the terms – and be prepared to absorb the cost if the unexpected occurs.
Importantly, travelers flying in the U.S. should remember they do have one built-in protection: per Department of Transportation regulations, if you book a flight that’s at least 7 days out, you have a 24-hour window to cancel for a full refund.
This rule allows a grace period to change your mind or correct a mistake.
However, after 24 hours, even airline tickets typically become nonrefundable (except as airline credit, depending on the fare type).
And the most restrictive “Basic Economy” fares on many airlines offer no changes at all once booked – a policy that has made a comeback as carriers push budget-minded travelers into no-refund tickets.
How to Protect Yourself in a No-Refund World
As non-refundable bookings proliferate, travelers are not without options. Here are strategies to protect your trip – and wallet – amid the tightening cancellation rules:
- Consider Travel Insurance: Standard travel insurance can cover your costs if you must cancel for covered reasons (like a serious illness or injury). Notably, many policies will refund pre-paid, nonrefundable expenses under qualifying circumstances. For maximum flexibility, look at upgrading to a “Cancel For Any Reason” (CFAR) policy, which lets you cancel for any cause (even non-emergencies) and get back a significant portion (often 50–75%) of your trip cost. CFAR coverage costs extra (it can add 8–12% to your trip price) , but it’s the ultimate safety net if you’re booking expensive nonrefundable travel in uncertain times. Travel insurance does raise trip cost, yet it can turn a non-refundable gamble into a more tolerable risk. (Tip: Check if your credit card offers any built-in trip cancellation insurance that might cover nonrefundable bookings as well.)
- Leverage the 24-Hour Rule and Generous Providers: If you have buyer’s remorse immediately after booking a flight, remember the U.S. 24-hour refund rule – act fast to cancel within a day. When possible, book directly with airlines or hotels known for more flexible policies. A few airlines (like Southwest) still allow changes or cancellations with no fees on all tickets, refunding as credit or rebooking value. Some online travel agencies also voluntarily offer free 24-hour cancellation on hotels. Taking advantage of these policies can provide a cushion even when buying a “no refund” deal.
- Negotiate or Ask for Exceptions: Even with “ironclad” no-refund rules, you might have luck appealing to customer service for a one-time exception. Politely asking for a travel credit or change can sometimes yield a compromise. “Depending on the supplier, most would work with the client to issue a credit for a future trip,” advises travel agent Laura Barlow – but you have to speak up and ask. In practice, a sympathetic manager may bend the rules to keep you as a customer, especially if you have a compelling reason. It never hurts to inquire about rebooking or credit options rather than simply no-showing.
Lastly, travel advocates suggest voting with your wallet.
If consumers overwhelmingly choose flexible booking options (even if slightly pricier) and avoid nonrefundable rates, it sends a message to the industry. “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,” writes consumer advocate Christopher Elliott.
While non-refundable travel deals can be tempting when they shave a few dollars off the price, travelers in 2025 are learning that flexibility has real value.
In a world where everything from flights to hotels can suddenly become a one-way financial trap, knowing your risks – and how to mitigate them – is now an essential part of trip planning.