Refundable vs. Non-Refundable Flights: What Should Your Travel Policy Cover?

Booking the wrong type of airline ticket is an easy mistake to make. An employee may select a more expensive refundable fare when a lower-cost option would have met their needs, or they may book a non-refundable ticket only to discover later that their travel plans need to change.

For travel and finance teams, the question is what to do next. The best response depends on the financial impact, available recovery options, company travel policy, and circumstances surrounding your employee’s trip.

Here’s how organizations can turn a common booking mistake into a practical travel policy playbook.

What happens when an employee books the wrong airfare?

There are two common scenarios organizations may encounter:

• An employee books a refundable fare unnecessarily. The company may pay a premium for flexibility that ultimately isn't needed.
• An employee books a non-refundable fare and needs to change or cancel the trip. Depending on the airline and fare rules, the company may face a change fee, difference in fare, travel credit, or loss of some or all of the ticket value.

Before deciding how to handle the mistake, travel managers should understand the fare conditions and determine which option creates the best outcome for the business and employee. That way, it’s a win-win for everyone involved. 

1. Assess the financial impact first

Start by looking at the total cost of correcting the booking rather than focusing only on whether the original ticket followed policy.

Consider the fare difference between the original and replacement ticket, applicable cancellation or change rules, and whether the airline provides a window in which the reservation can be canceled without penalty.

In some situations, correcting an out-of-policy booking may actually cost the organization more than keeping it. Understanding the full financial impact helps travel managers make a more informed decision.

2. Determine the best recovery option

Once you understand the fare rules, identify the most practical path forward.

Depending on the airline, ticket, and timing, options may include:

• Canceling and rebooking the reservation
• Changing the existing itinerary
• Retaining the value of the ticket for future travel when permitted
• Keeping the existing reservation when changing it would create a greater expense

The goal should be to recover as much value as reasonably possible while avoiding unnecessary costs or disruption to the employee's trip.

3. Decide when a travel policy exception makes sense

Travel policies provide consistency and help organizations control costs, but there may be situations where flexibility is appropriate.

An employee may need a refundable fare because travel dates are uncertain, a customer meeting could change, or unexpected business circumstances make flexibility particularly valuable. Personal emergencies, accessibility considerations, and other individual circumstances can also affect the best course of action.

A defined exception process gives travel managers room to consider these situations while maintaining appropriate oversight.

67% of business travelers say they are hesitant to travel for business, with 28% citing the likelihood of disruptions, such as flight delays or cancellations.

-8th Annual SAP Concur Business Travelers Survey Report, 2026

4. Create a playbook for booking mistakes

Employees should know what to do when they realize they've booked the wrong fare. A clear process can help teams address mistakes sooner, when more options may still be available.

Your travel policy or internal guidance should address:

• Who employees should contact after discovering a booking mistake
• Who can approve an exception
• When a reservation should be canceled, changed, or left as booked
• How fare differences and other costs should be evaluated
• How exceptions should be documented

A consistent process can also help travel and finance teams identify recurring issues rather than handling every booking mistake as an isolated incident. 

Nearly half of business travelers say they bend or break their organization’s travel or expense policy. 

-8th Annual SAP Concur Business Travelers Survey Report, 2026

5. Prevent repeat booking mistakes

The most effective way to manage booking errors is to reduce how often they happen.

Clear booking guidance can help employees understand when refundable fares are appropriate and when lower-cost fares should be selected. Organizations can also use travel policy settings, approval workflows, preferred booking options, and employee education to reinforce those expectations during the booking process.

Travel and expense data can provide another layer of insight. If the same types of booking errors occur repeatedly, organizations can use those patterns to identify confusing policies, gaps in employee education, or opportunities to adjust their travel program.

Balancing cost control with the employee experience

There isn't one response that will make sense for every incorrect airfare booking. The circumstances of the trip, fare rules, financial impact, and employees' needs all matter.

A well-defined policy gives employees clear expectations while giving travel managers a framework for making informed exceptions. By establishing a process for evaluating mistakes, recovering value, and preventing repeat issues, organizations can protect travel budgets without creating unnecessary friction for employees.

SAP Concur solutions help organizations put travel policies into practice, giving employees clearer guidance while providing businesses with greater visibility and control over travel spend. With the Booking Agent, powered by Joule, built directly into Concur solutions, AI-guided experiences can help employees make more informed decisions in the flow of work, including navigating travel policies and choosing options that align with organizational guidelines.

Learn more about Concur Travel and Joule with SAP Concur solutions.