The Ultimate Guide to Travel Vouchers: All You Need to Know

Travel cancellations and disruptions can be a headache. To make up for it, the travel company or carrier might give you a voucher. A travel voucher can be used to pay for future travel, like flights or cruises. You might even receive a bonus value above what you paid as an incentive to book another trip.

In this guide, we’ll look at how travel vouchers work and how to use travel vouchers, and explain the difference between travel vouchers and travel insurance.

What is a Travel Voucher?

A travel voucher is a credit that can be redeemed for future trip-related expenses. You might receive a travel voucher from an airline carrier, hotel, or tour company if your travel gets cancelled or interrupted for a qualifying reason.

Here are some examples of when you might get issued a travel voucher:

• Cancelled flight. If your flight gets cancelled due to mechanical issues, you could get a voucher to upgrade your seat or rebook another flight.
• Overbooked hotel. If your hotel reservation gets cancelled because of overbooking, you might get a credit for a free stay in the future.
• Cruise delay. If your cruise departure is delayed because of bad weather, the cruise line may provide a travel voucher for a free meal once you’re onboard.

How Do Travel Vouchers Work?

Travel vouchers work by giving you money to purchase travel services in the future with the same carrier that issues the voucher. They work similarly to a store credit.

Any travel company can provide a voucher, but they’re commonly issued by airlines, cruise lines, travel agencies, and tour companies. Instead of giving travelers cash, the voucher acts as compensation for the inconveniences and encourages customers to book again.

For example, imagine that your flight gets overbooked, and you give up your seat to take a later flight. In this case, the airline might provide a $500 travel voucher that can be used for a future flight. If your original flight only cost $250, this could be a major perk.

Most travel companies send digital vouchers via email with a special voucher code or credit number. The email includes instructions for how to redeem the travel voucher, what the money can be spent on, and the date it must be redeemed by.

A voucher isn’t always guaranteed if you experience a travel-related cancellation or disruption. If you’re planning a trip, you should still consider purchasing a comprehensive travel insurance policy that can cover trip cancellations, interruptions, delays, and more.

Pros and Cons of Travel Vouchers

Vouchers can be a welcome reward for travelers dealing with unforeseen disruptions, but they also have downsides, like expiration dates. Here are some of the main pros and cons of travel vouchers.

Pros

• Easy alternative when cash refunds may not be available. If a travel carrier won’t provide a cash refund for cancelled, delayed, or disrupted travel, a travel voucher can be a good alternative so you don’t lose all the money you spent.
• Some vouchers offer bonus value above what you paid. Some travel vouchers provide bonus value above what you initially paid. For example, a cruise voucher might provide money for another voyage plus a cabin upgrade.
• Can be flexible for future trips. Travel vouchers provide flexibility, especially for frequent travelers. The credit can be used to book another trip at a future date, and oftentimes, for a different destination.

Cons

• They expire. Travel vouchers usually have an expiration date. You must redeem the credit before it expires, or you’ll lose it. Most travel vouchers expire within 12 to 24 months from the original trip date.
• There may be limitations on travel dates or destinations. Some travel companies put limitations on when you can use travel vouchers, or where you can travel. For instance, you might not be able to use the travel voucher to book a flight over a holiday weekend.
• It’s not a cash refund. A travel voucher is a credit—it’s not cash, and it’s not redeemable for cash. You can only use the money for qualifying travel-related expenses, and you must book with the company that issued the voucher.

How to Use a Travel Voucher

To use a travel voucher, you should check the expiration date, make your reservation, and check out online using the voucher code or credit number. Here’s a closer look at how to redeem a travel voucher:

1. Find the expiration date. Check the email with your travel voucher information and find the expiration date. Make sure the voucher is still valid before you book anything.
2. Check the terms. Find out if the voucher has any restrictions, like blackout dates or destinations that you can’t travel to.
3. Redeem the voucher. Visit the travel company’s website and make your new reservation. When you go to the checkout screen, you’ll enter the voucher code.
4. Confirm your reservation. Once you confirm that the voucher has been successfully redeemed, you’re ready to confirm your reservation.

Travel Vouchers vs. Travel Insurance

Travel insurance protects the financial investment you make in a trip. While travel vouchers and travel insurance can both provide some coverage for travel expenses, they aren’t the same. The main differences between travel insurance and travel vouchers are:

• How they apply. A travel insurance policy can reimburse nonrefundable travel expenses. It includes coverage for things like Trip Cancellation, Trip Interruption, Emergency Medical expenses, and Lost Baggage. A travel voucher is a credit that can be used to book a future flight, cruise, tour, or other travel service.
• Who issues them. Insurance companies issue travel insurance policies, whereas vouchers can be issued by airlines, hotels, travel agencies, tour companies, or cruise lines. Travelers purchase travel insurance before a trip, and a voucher is only provided after a trip disruption has occurred.
• Coverage period. Most travel insurance policies are only valid for the trip duration you select when you buy the policy, like two weeks or 30 days. There are also annual travel insurance policies, which cover all the trips you take during the year. A travel voucher normally expires after 12 to 24 months.
• Reimbursement method. If something happens before or during a trip, you can file a claim with your travel insurance company to recoup the money you spent upfront in cash. With a travel voucher, the money can only be used to rebook travel with the carrier that issued the certificate.

Can you use travel insurance for the value of a travel voucher?

No, if you receive a travel voucher and you have travel insurance, you can’t submit a travel insurance claim to get reimbursed for the value of the travel voucher.

Here’s an example: Let’s say your hotel reservation gets cancelled at the last minute, but you didn’t prepay for the room. As an apology, the hotel gives you a $300 voucher to use at a later date. In this case, you couldn’t file a travel insurance claim to get that $300 voucher in cash.

However, if the hotel room was prepaid, you could use your travel insurance to get reimbursed for the amount you spent upfront. You would also be able to keep the travel voucher to use for a future stay at the same hotel.

FAQs: Travel Vouchers

Do travel vouchers expire?

Yes, travel vouchers expire. Most travel vouchers are valid for 12 to 24 months once issued. If you don’t redeem the voucher before it expires, you’ll lose the credit.

Can you get a cash refund instead of a voucher?

Maybe. If a travel company issues a voucher, you can always ask for a cash refund instead. And in certain cases, airlines are required to provide a cash refund, like if there’s a significant delay or you’re downgraded in class.

What if I cancel a trip booked with a voucher?

If you cancel a trip that was booked using a voucher, a travel insurance policy might cover your prepaid costs if you cancelled for a qualifying reason, like a family emergency. However, your policy wouldn’t reimburse the value of the voucher. It would only cover the amount of money you spent out-of-pocket on prepaid travel.

Can I trade in my travel voucher for cash?

You can’t trade in your travel voucher for cash, but you might be able to sell your voucher for cash on a third-party resale website. If you transfer the voucher, however, you may not get the full face value in cash.