The Hidden Costs of Holiday Travel

Few travelers expect holiday travel to go off without a hitch. But it’s unlikely that travelers truly understand how much holiday travel (and its near-certain hiccups and delays) is costing them.

A recent report from LegalShield attempts to shed light on that question, pointing out that Americans pay twice for holiday travel disruptions: Once in dollars and once in time.

In particular, the report says Americans face substantial hurdles when seeking travel disruption compensation. It seems that despite increased consumer awareness of their travel rights, the process remains time-consuming and often ineffective with the average person losing several hundred dollars and nearly a full workday pursuing claims.

In particular, the LegalShield report found that:

• Nearly four in 10 Americans lose $500-plus due to travel disruptions, while nearly one in five lost more than $1,000
• 40 percent of holiday travelers spent more than four hours fighting airlines, hotels and rental companies for “rightful compensation” and 14 percent spent more than eight hours
• While 75 percent of Americans understand their basic travel rights, more than half (54 percent) don’t feel comfortable asserting them 

Meanwhile, the cost of enforcing consumer rights in the travel industry remains prohibitive, according to LegalShield.

"This isn't just about delayed flights or lost bags anymore," Warren Schlichting, CEO of LegalShield said. "We're seeing a failure in consumer protection that's costing Americans both financially and emotionally during what should be a joyful season.”

‍The LegalShield study also spotlights the most common disruptions impacting holiday travelers:

• Flight delays (46 percent of travelers)
• Flight cancellations (34 percent)
• Lost luggage (32 percent)
• Rental car issues (30 percent)

When it comes to cancelled flights, the Biden Administration and the Department of Transportation has been working to require compensation for travelers, but has received backlash from the industry, which claims such requirements would lead to increased flight costs.

This is despite the fact that the United States lags behind a long list of other countries that already offer such compensation, per the experts at AirHelp, an online company that assists passengers seeking compensation.

"The US Department of Transportation's new rulemaking under Secretary Buttigieg is a potential game changer for passenger rights in the US, and should the incoming Trump administration continue with these rules, it will be a massive step forward for travel in the U.S.," Eric Napoli, AirHelp's Chief Legal Officer, told TravelPulse.

"However, it’s important to note that the current state of passenger rights in the USA is far behind other regions," Napoli added. "Compensation for delayed, cancelled, and overbooked flights in addition to a refund, has been in place and working well for over 20 years in the EU, UK, but also in Turkey, Canada, and, more recently, Saudi Arabia."

Key Travel Rights to Remember

Asserting your rights as a traveler can be daunting. With that in mind, LegalShield’s report offers some tips for travelers who are seeking compensation.

• Canceled flights: Airlines must provide full refunds within seven to 20 days
• Significant delays: Free re-booking is required for delays over three hours (domestic) or six hours (international)
• Lost baggage: Airlines must refund fees if bags aren't delivered within 12 hours (domestic)
• Rental cars/hotels: Review all fees beyond base rates before booking
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The LegalShield survey that formed the basis for its new report was conducted in October 2024 and surveyed 1,028 adults, ages 18 and older, who live in the United States. The sample was balanced by age, among other demographic variables, according to the U.S. Census.

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