The Cost of Compensation: Analyzing Fees Across Airline Claim Services 

When you’ve had an inconvenience with an airline that caused you trouble, the natural route is to obtain flight compensation. For instance, you may have lost your connection flight due to a delay, or the airline lost your check-in baggage. Should this happen to you, it’s natural to look for an airline claim service that can help you, especially since most delays are the airline’s fault.

Man waiting for his flight

Unfortunately, finding a flight delay company that can help you is not very easy. Each has its own fees, and you need to find the one that offers the best benefits for you. This is why, in this article, we will help you understand the cost of compensation and how different airline claim services charge for their help.

Average Percentage of Airline Claim Services

The fees that are charged are based on the specific fee structure of the company. Once you win your claim, the service will draw a commission from your compensation, representing their fee. Generally, the best flight delay compensation company uses a “No Win, No Fees” system, meaning they will not charge you unless they win the case for you.

Based on their policy, the average percentage can be anything from 20% to 50%. This percentage is deducted from your sum before it enters your account, so you won’t have to pay anything in advance.

To understand these averages better, below you have a comparison table of how different companies charge for their fees:

It’s always a good idea to check the service terms or inquire about their fees. This way, you can choose the business that offers the lowest rates.

Types of Fees Charged

Even the best flight delay compensation company may charge various fees based on the action they have to take. Most firms only charge a service fee, but a more complex claim might require different efforts on their part. Usually, you can expect to come across the following fees:

Service Fees 

The service fee is the main tax you must pay for the services provided, and even the best company for flight compensation charges it. This fee can vary from one company to another, but keep in mind that the average is somewhere around 35% of your claim. This fee is only charged once they win the claim for you, at least where a reputable company is involved.

Legal Action Fees

If your case is more complex and requires legal action, then the airline claim service may charge an extra fee.

If your case is more complex and requires legal action, then the airline claim service may charge an extra fee.

Administrative Fees

Some airline claim services can also ask for administrative fees to cover different steps required to perform a service. This can include aspects such as handling paperwork or opening communications between different airlines.

Flight boarding time

Possible Hidden Fees 

Hidden fees can happen with any service, especially those with very low rates. While not all services charge such fees, it is essential you familiarize yourself with their terms and conditions. A reputable company will put all of their taxes upfront, but in certain circumstances, the following hidden fees might apply:

• VAT Tax 

Some firms also charge the VAT tax separately. While the best company for flight compensation includes the VAT tax in the service fee, it’s worth checking whether or not it is hidden, as this can increase the total cost.

• Court Charges

There may be cases when the average legal fees won’t be able to cover the payment, especially if court charges are involved. If your claim is more complex and leads to actions such as court proceedings, then a charge for that may appear on your invoice.

• Wire Transactions

While rarely, some firms can charge a fee if your claim is sent through a wire transfer. This doesn’t usually happen, especially if the bank itself does not charge a fee, but you should be wary about this extra cost.

• Miscellaneous Expenses 

Certain fees can also appear on your invoice and be labeled as miscellaneous. This can include taxes for expedited services or even consultation fees, which can add to the total cost. While most online companies are upfront and include these expenses in the service fee, some charge them separately.

• Currency Conversion 

Some claims might also include a currency conversion, which can boost the final cost. So, if you claim flight compensation in a different currency than what you are using, then you might expect to pay a currency exchange fee.

The Bottom Line

airline claim services

The fees charged by airline claim services vary from one company to another. The service fee is standard for every company if they win the claim for you, but some other expenses could apply. Different companies might also charge a legal fee, along with consultation or other hidden costs, but a reliable business should remain transparent. You can check out StopDelay to learn more about the fees for said services!