Singapore Airlines is incentivizing travelers to opt for credit for canceled tickets rather than refunds by offering a bonus on flight credits, based on a traveler's cabin class.
For tickets bought for Singapore Airlines or SilkAir flights on or before March 15 for travel up to May 31, the carrier is tacking on extra credit in addition to waiving no-show and booking fees for travelers who want to retain the ticket's value as credit. Economy Class tickets earn a bonus of 75 Singapore dollars (about $50), Premium Economy tickets earn a 100 Singapore dollar bonus, Business Class tickets earn a 200 Singapore dollar bonus and First Class tickets earn a 500 Singapore dollar bonus.
While the carrier in the U.S. market "has always allowed refunds and will continue to do so under normal fare conditions," the bonus program could benefit travelers who know they'll have future travel with the carrier, U.S. director of sales Kamran Ahmed said. "Depending on the volume a company has with us, that could develop into a significant amount," he said.
Credit will be good for travel until June 30, 2021, though it can be used only by the passenger whose name is on the ticket, Ahmed said.
As massive amounts of refunds could prove a liability for cash-strapped airlines during the Covid-19 crisis, such rewards are becoming more commonplace. Qatar Airways, for example, is adding 10 percent of the original fare to passengers who take flight vouchers. The Lufthansa Group is offering a discount of €50 for each rebooking.
While refund requirements vary by jurisdiction—and airlines are pushing for more leniency in these policies—vouchers with bonuses can be a consistent offer on a global basis, Ahmed said.
"Travel managers are going through a lot right now, having several policies to deal with if they have several global points of sale," he said. "This gives us one global policy."