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15 November 2024

Your wins: Air New Zealand fee refunded

Leigh was planning a trip to Australia’s Gold Coast for herself and her family. She stumbled across a reasonable price for flights on Air New Zealand’s website, but wasn’t sure if the dates would match up with her accommodation plans.

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Helpfully, Air New Zealand offered a “hold fare” option. For $25, Leigh was able to hold the price of the flights as it was, like a quote.

Air New Zealand said in two separate emails and in it's terms and conditions that the hold would last for 3 days, until 11:59pm on the third day, a Sunday. If Leigh didn’t confirm the booking by the time stated, she would lose the $25 hold fare fee.

Yet 3.5 hours before the deadline, Leigh’s booking disappeared.

“Despite trying several times to complete booking online on Sunday evening I was told ‘sorry, we can’t find that booking’.”

According to Leigh, what followed was a 53-minute phone call with Air New Zealand’s customer service, who denied there was an issue. She asked, to no avail, for a refund of her money, as the booking closed before the stated time, 11:59pm.

Trying her luck via email, another customer service representative told Leigh that the fare hold lasted for exactly 3 days from purchase, rather than 3 calendar days.

The representative said in an email, “The time 11:59 PM is not the time that the fare has been [held], it was calculated at the start time of the ticket hold. Hence we are unable to process your request for a refund at this time.”

But the emails said that 11:59pm was the cut off, not any time before then. Leigh told the representative this, who still denied Leigh a refund based on Air New Zealand’s policy. Leigh tried again to explain how she felt misled by the three emails from the airline. Acknowledging a mistake, the representative said Air New Zealand’s software sets the time and automatically cancels bookings if the ticket isn’t paid for before the cut off. Yet again, Leigh was denied a refund.

Leigh decided to contact Consumer NZ. As a member, she had access to Consumer’s advice line and our expert advisers, who then contacted Air New Zealand on her behalf.

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Air New Zealand’s response

After all of Leigh’s effort, it only took one email from Consumer to sort it all out. Our advisors explained that Leigh was owed a refund, and Air New Zealand agreed. Initially, the airline explained the mistake as a "systems error," but later stated it was human error.

The airline said in a statement to Consumer, “We have thoroughly reviewed the situation and found that while our Fare Hold policy is accurate, one of our customer service consultants miscalculated the three-day policy. This was a genuine human error, not an IT issue.”

“As soon as we realised the mistake, we promptly refunded the $25.00. We sincerely apologise for any inconvenience this may have caused and appreciate the customer's understanding.”


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