The Direct Approach: Booking with Airlines and Hotels
When you book directly on an airline’s or hotel’s website, the transaction is simple: you pay them, and they provide the service. If something goes wrong, like an airline cancelling your flight, your claim is directly with them. This is often the most
straightforward path to a refund. According to regulations from India's Directorate General of Civil Aviation (DGCA), if an airline cancels a flight, it must offer you the choice of an alternative flight or a full refund. The airline is solely responsible for processing this. The benefit here is clear communication. You are dealing with the service provider, eliminating the 'he-said, she-said' that often happens with third-party bookings. The downside is that you have to manage the follow-up yourself. If the refund is delayed, your primary recourse is to persistently contact the airline’s customer service and, if necessary, escalate the issue through official channels like the AirSewa grievance portal.
The Middleman Maze: Using Online Travel Agencies
Online Travel Agencies (OTAs) like MakeMyTrip, Goibibo, or Expedia offer convenience and price comparisons, but they add a layer of complexity to the refund process. When you book through an OTA, your contract is with them, but the service is delivered by the airline or hotel. This is where the confusion starts. If your flight is cancelled, the airline owes a refund, but they typically refund the entity that paid them—the OTA. The OTA must then process that amount and refund it to you, the customer. This two-step process is a common source of significant delays. You might find yourself caught between the OTA, which claims it is waiting for funds from the airline, and the airline, which might claim it has already processed the refund to the agency. This back-and-forth can be incredibly frustrating and time-consuming for travellers who just want their money back.
Who Is Actually Holding Your Money?
Understanding the flow of money is crucial. When you book direct, the airline or hotel has your funds. When you use an OTA, the agency is the 'merchant of record.' They collect your payment. For a flight, the airline refunds the OTA, not you directly. The OTA then has to pass that refund along. New DGCA rules have clarified that the ultimate responsibility for ensuring the refund reaches the passenger lies with the airline, even for bookings made through agents. The regulations specify clear timelines: for credit card payments, a refund should be processed within seven working days. For bookings via travel agents, the airline must ensure the refund reaches the passenger within 14 working days. Despite these rules, delays are common, and passengers often have to follow up aggressively with both the OTA and the airline to get their money. A good first step is to check your credit card statement to see which company name appears on the charge—that's who took your money and your first point of contact.
Your Financial Ally: The Credit Card Chargeback
If you paid by credit card and are getting nowhere with the airline or OTA, you have a powerful tool: a chargeback. A chargeback is a reversal of the transaction initiated by your bank. You can file a chargeback for services not rendered—for example, a flight that was cancelled by the airline or a hotel room that was not provided as booked. The process involves contacting your credit card issuer, providing details of the dispute, and submitting evidence like cancellation emails and communication records. The bank will investigate the claim. Most banks offer a provisional credit while they investigate. This move often motivates the merchant (the airline or OTA) to resolve the issue quickly. Be mindful of timelines; RBI guidelines allow up to 120 days from the transaction date to file a dispute, but it's best to act as soon as you realize a refund isn't forthcoming.
Know Your Rights: What the Rules Say
In India, passenger rights are protected by both the DGCA and the Consumer Protection Act, 2019. For flights, DGCA rules updated in March 2026 are quite specific. Airlines can no longer force passengers to accept credit shells for cancelled flights; you are entitled to a full refund to your original mode of payment. These refunds must also include all statutory taxes and fees, even on non-refundable tickets if the flight is cancelled or you're a no-show. If an airline cancels a flight with less than 24 hours' notice, passengers may be entitled to compensation ranging from ₹5,000 to ₹10,000, in addition to a full refund or an alternate flight. If you're facing a stubborn travel provider, you can file a complaint on the National Consumer Helpline or approach a consumer court for 'deficiency in service.'
