Business buyer beware of nonrefundable flights

When purchasing a flight for a prospective business partner or employee, keep in mind that that once it's paid for, that trip becomes the property of the person it was purchased for.

Reader Jeff Fowler, president of Decision Software, Inc. in Lanham, Md., said the company booked a flight for a sales consultant last week to discuss a business opportunity. A full fare ticket on Continental was going to cost $600, versus $138 for a nonrefundable ticket, so he bought the nonrefundable.

The consultant cancelled, and Fowler found out the hard way that even though his company purchased this ticket, the consultant can apply the fare towards another trip anytime within a year without the company's consent.

On top of that, the traveler could theoretically book a more expensive trip, because the ticket stays on the original source of payment, in this case the company credit card. "Picture a situation where you're bringing someone in for an interview, or perhaps you book a flight for an employee who quits, then they turn around and use the fare towards a ski vacation,'' Fowler wrote. "Ha ha, joke's on you!''

Continental spokeswoman Mary Clark corroborates Fowler's assessment of the rules. "A nonrefundable, nontransferable ticket is really the property of the person he bought the ticket for. When you buy a ticket you enter into a contract; whoever's name is on the ticket ... it's their ticket to use.''

The only way to avoid this is to let business associates buy their own travel, then offer to reimburse them. But that also creates an awkward situation if a small business wants to limit the amount they'd be willing to reimburse.  

Have you run into this scenario on either side? How did you resolve it? Write to Barbara Correa at bboydstoncorrea@yahoo.com.