Consolidator Air Tickets: What You Need To Know

We at Carlson Wagonlit Travel deal with Consolidators that have been in business for many years and have been in good financial standing. But there are some things you should know when you use a consolidator ticket. Not all consolidators have your best interest in mind.

Consolidators, the "outlet stores" of the airline business, sell discount tickets that can cut your airfare by as much as $200 to $300 on an overseas trip — and by similar amounts on domestic travel when you can't accept the restrictions on a big airline's cheapest tickets. But are consolidator tickets safe to buy and use? Here's what you need to know about an often misunderstood corner of the airfare marketplace.

1. Consolidator tickets aren't always the cheapest you can find. Often, during a short-term fare war, an airline's advertised "sale" price is less than the best consolidator deal. Obviously, at those times, you're better off buying at the airline's asking price. On the other hand, when list prices are high (to Europe in the summer, for example, or any time across the Pacific), a consolidator ticket may well be your best bet.

2. Consolidator tickets are highly restricted. Most entail one or more of the following limitations: (a) a refund only through the consolidator; (b) a refund penalty that's higher than the airlines' usual fee; (c) complete non-refundability; (d) no frequent flyer credit; (e) no switching to another airline if your flight is canceled or delayed — you'll have to wait until your original airline can get you going — and no meals or overnight accommodations; (f) no senior discounts; (g) no seat assignment until you arrive at the airport for departure; (h) no special meals; plus (i) many of the other restrictions that also apply to cheap list-price tickets. On the other hand, advance-purchase and minimum-stay requirements may be a bit more lenient than those of a cheap list-price ticket.

You can't put a dollar value on most of those limitations, but you can on the frequent flyer credit. Credit is worth 1 cent to 2 cents a mile, so on a round trip to Europe, for example, the credit you earn is worth anywhere from $70 to $220, depending on the route and how you value the credit. If frequent flyer credit is important, don't buy a no-credit consolidator ticket unless it undercuts the airline's best price by at least the value of the credit you'd lose.

3. The risk you run, if any, occurs when you buy the ticket, not when you use it. The reason has to do with the way consolidators buy tickets from airlines. A lot of travel writers — including some who should know better — persist in telling you that consolidators "buy in bulk," stating or at least implying that consolidators actually put up the money for the tickets in advance and take title to them before reselling. That's just not right. Instead, the consolidator doesn't actually buy your ticket from the airline until after you've paid for it.

And that's where trouble can hit you. If a consolidator is on thin financial ice, it may delay buying your ticket for several weeks or even months after it has your money. During that time gap, the airline may sell out the seats it has allocated to consolidator travel. You may wind up not having the seat you thought you bought — and the consolidator promised. And if the consolidator fails during that time, you get neither your ticket nor your money back.

The worst horror stories I've heard about consolidator tickets are from travelers who bought from a discount agency far from their home city, then didn't get their tickets on time — or at all. They couldn't go to the agent's office to demand timely ticket delivery, nor could they conveniently apply any legal pressure such as small-claims court. Once you have your valid ticket, you should experience no further problems. There's nothing illegal or even shady about consolidator tickets — if airlines didn't want you to have them, they wouldn't cut deals with consolidators.

You can easily avoid the risk. Some of the biggest consolidators are strictly wholesalers that sell only to travel agencies. Go to a travel agency you trust, in your home city, and ask an agent there to (1) find the best available consolidator fare and (2) check on any better deals that might be available. That way, you'll pay minimum price at minimal risk.

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