Customer Experiences with Airline Refunds: An Analysis of Procedures, Challenges, and Policy Implications

Abstract

Purpose: The purpose of the study was to analyse the existing procedures and policies governing airfare refunds across airlines; to identify the key challenges faced by customers during the airfare refund process, including issues related to intermediaries, and to examine customer satisfaction levels with respect to airfare refunds and associated procedures.

Design/methodology/approach: The study employed a quantitative research design to examine customer experiences with airline refund procedures and their impact on satisfaction. Data were collected through a structured questionnaire distributed via Google Forms to airline passengers, primarily in Muscat. A total of 76 responses were obtained. The instrument measured booking behaviour, refund awareness, perceived challenges, and satisfaction levels. Descriptive and inferential statistical techniques were applied to analyse relationships and test significance.

Findings: The findings reveal significant procedural challenges in airline refund processes, particularly in communication, transparency, and interpretation of airline rules. Although respondents ultimately reported moderate satisfaction after receiving refunds, the process itself was perceived as complex and inefficient. The results highlight a communication gap between airlines, intermediaries, and customers, underscoring the need for clearer policy dissemination and improved coordination to enhance customer trust and overall service experience.

Research Implications: This study contributes to service management and airline industry literature by identifying structural communication gaps in refund procedures. It advances understanding of how transparency, intermediary roles, and procedural fairness influence customer perceptions. The findings provide a foundation for future research on regulatory frameworks, digital refund systems, and consumer protection mechanisms within the aviation sector.

Social Implications: The study emphasizes the importance of transparent and fair refund practices in safeguarding passenger rights. Improved communication and simplified procedures can reduce financial uncertainty and enhance public trust in the airline industry. Strengthening regulatory oversight and consumer awareness initiatives may contribute to more equitable service delivery and improved accountability across stakeholders.

Originality / Value: This research offers empirical insights into customer experiences with airline refund processes, an area that remains underexplored compared to service disruption studies. By integrating procedural challenges, satisfaction outcomes, and intermediary involvement, the study highlights transparency as a critical determinant of customer trust. The findings provide practical value for airlines, travel intermediaries, and policymakers seeking to reform refund governance.

Keywords:  Airline refund policies, customer satisfaction, Service recovery, Transparency in aviation, Travel Intermediaries.

JEL: L93, M31, D12, L51, D91.