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Seeing the dreaded “Canceled” notice on the departure board at the airport, or receiving a last-minute email about your hotel booking, can quickly turn a dream holiday into a nightmare.
But all is not lost! Airlines, hotels, and booking platforms have specific policies you can use to your advantage to help get you back to your holiday and secure compensation.
. . .
Steps To Take if Your Flight Is Canceled
The U.S. Department of Transportation (DOT) requires airlines in the U.S. to provide automatic refunds for flight cancellations, no matter the reason, if they can’t book you on an alternative flight.
Here’s what you need to do to get a new flight or refund.
Contact the airline immediately
If you’re at the airport, join the line quickly to speak with a gate agent. While waiting, call the airline’s customer service line to rebook your flight.
Other things you can try:
- Check the airline’s website or mobile app to rebook your flight (have your reservation code ready).
- Use a self-serve kiosk if available (American Airlines and United Airlines provide these).
- Try contacting the airline through X or other social media platforms.
Know your compensation rights
The airline should automatically rebook you on the next available flight but if they can’t, request a refund or inquire about rebooking with a partner airline.
If you’re flying within the U.S., federal law states a passenger is entitled to an automatic refund if “they do not accept the significantly changed flight, rebooking on an alternative flight, or alternative compensation.”
Remember: You'll receive a refund only if you don't accept a rebooked flight. Taking an alternative flight makes you ineligible for a refund.
. . .
If you booked through a travel agent or online travel agency, they must provide a “proper” refund when “the service cannot be performed as contracted on a flight to, within, or from the United States.”
If flying internationally, different policies apply. For example, under Europe’s EU261 rule, passengers can choose between:
- Reimbursement
- Re-routing
- Return
EU261 also requires airlines to give you cash compensation for the inconvenience, in addition to a refund or rebooking — but only if the cancellation wasn’t due to extraordinary circumstances like severe weather or security risks.
U.S. airlines make no promises about cash compensation beyond a refund.
READ MORE: Domestic vs. International Flight Compensation: Know the Rules
Ask for accommodation and meal vouchers
It’s always worth asking for meal vouchers, hotel accommodation, or transport if delays or cancellations lead to extended waits or overnight stays.
While U.S. airlines aren’t legally obliged to offer these, you might get lucky and be put up in a hotel.
The DOT explains that while airlines don’t have to reimburse your incidental expenses (like rental cars, hotel rooms, or meals) during significant delays or cancellations, some airlines might offer these — so it’s definitely worth asking!
Check the DOT's Cancellation and Delay Dashboard to see what each major airline will and won’t give you if your flight is canceled.
READ MORE: Your Rights in the Sky: The DOT’s Role in Protecting Passengers
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. . .
Steps To Take if Your Hotel Booking Is Canceled
It’s wild to think you could show up at the hotel you booked and there not be a room for you, but it happens.
Hotels may cancel a booking if it’s overbooked or the room has an issue and can’t be used. Or if you used a third-party booking platform, there may have been a miscommunication between the systems.
Here’s what to do if you find yourself bed-less on your vacation.
Contact the hotel or booking platform
If you booked directly with a hotel and haven’t arrived yet, call or email them to confirm the reason for the cancellation and request alternative accommodation of equal or better quality.
If you’re already at the hotel and are being denied your reservation, it’s unfortunately a bit more difficult. Hotels aren’t legally required to rebook you. You may have to escalate the issue to a manager on duty or to the corporate office if it’s a chain.
If you made the booking through a third-party platform, they’re responsible for refunding your booking. Contact the platform and tell them your situation. They should be able to help.
For example, Booking.com says they can help you choose another hotel and will refund you the difference if the new hotel is more expensive.
Request compensation or refunds
Check your confirmation email for the cancellation policy of the accommodation provider to see what you might be entitled to.
If you booked through a third-party platform like Booking.com or Hotels.com, they will refund you, but it may take a few days for it to hit your account, depending on your bank. They should email you with the cancellation and let you know they’ve refunded you.
If it’s a last-minute cancellation, ask for reimbursement for additional costs like higher-priced alternative accommodation.
When Airbnb hosts cancel before check-in, Airbnb offers you credits to use for another reservation right away. If you don’t use it within 72 hours, you will automatically receive a full refund instead.
RELATED: How to Request Hotel Compensation for Poor Experiences
General Tips for Handling Cancellations Effectively
Before you panic that your trip is ruined before it’s even started, take a deep breath and keep the following tips in mind.
Document everything
You need a paper trail, so make sure you:
- Save all those confirmation emails and text messages related to your booking, along with the cancellation communications.
- Keep all your receipts for any additional costs you’ve incurred.
- Make sure you know how to contact the hotel or airline.
- Keep all relevant information for your booking in one place so you’re not having to scroll through emails while trying to get a new flight. Save everything in a folder in your email, print copies of your bookings, and save flight tickets to your phone wallet.
Stay calm
While it’s understandable a canceled flight or hotel booking might make you feel stressed and frustrated, it’s important to remain as calm as possible when dealing with the airline or hotel.
Staying polite (while being confident in knowing what you’re entitled to) will get you a lot further than if you are rude or aggressive.
Use travel insurance and credit card protections
Travel insurance can protect you against unexpected cancellations or disruptions. Many policies will reimburse costs for canceled flights or hotels in situations such as bad weather.
But make sure you read through the fine print of the terms and conditions of your policy to see what is and isn’t covered.
You can browse an online marketplace like VisitorsCoverage to find a policy that suits you. Just remember you need to buy the policy before you take the trip — you can’t buy it after you find out your reservation has been canceled!
Booking your flight with a credit card may also help if there’s a cancellation. Many credit cards, like the Chase Sapphire Preferred® Card and The Platinum Card® from American Express offer coverage for expenses like meals, hotels, and transportation if your flight is canceled or significantly delayed.*
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FAQs About Flight and Hotel Cancelations
How long do I have to file a claim for reimbursement?
DOT advises you to proactively request a refund in writing from an airline or a ticket agent if you believe you are entitled to a refund and haven’t received one automatically.
Airlines and ticket agents are required to make refunds promptly. For airlines, “prompt” is defined as being within seven business days if you paid by credit card, and within 20 days if you paid by cash or check.
It’s a little vague for ticket agents, as “prompt” isn’t defined, so keep chasing.
Does travel insurance cover non-refundable hotel bookings?
Your travel insurance coverage will vary by company and plan, so carefully read your policy to see what is included.
Trip cancellation coverage may offer up to 100% reimbursement of prepaid, nonrefundable trip costs if your booking was canceled on you.
What should I do if the airline or hotel refuses compensation?
If you contact an airline or ticket agent about the refund and they refuse, you can file a complaint with the DOT.
TL;DR: Handling Flight or Hotel Cancellations
Cancellations are frustrating, but knowing how to respond ensures you can recover quickly and minimize any money lost.
Act immediately, document everything, and check the compensation policies for your airline or hotel. If you have travel insurance, you may be able to claim some of the costs of being stranded.

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Tegan Forder is a lifestyle, health, travel, and personal finance journalist and writer. She loves to enact small changes to improve her financial habits and save money to spend on the things she loves. She has written for The Guardian and Business Insider.
* Eligibility and Benefit level varies by Card. Terms, Conditions, and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.
Disclosure: Opinions expressed here are the author's alone, not those of any bank, credit card issuer, hotel, airline, or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post.