Q: I recently purchased a ticket and then ended up canceling the trip. The cost of the ticket can be applied to future travel, but I am told that if I do not use the total amount of the ticket all at once that I will "lose" the balance. (For example, unused ticket was worth $700, and new ticket is $400. The $300 unused will not be "banked" for future tickets -- it will be forfeited.) Is this correct? Appreciate your help.
— Stacy M.

A. Stacy, that's a great question. For a little background, in the old days (pre-2000) when we held paper tickets, it really represented currency. Losing a ticket was like losing cash as it held a designated value.

Nowadays with e-ticketing, the computer generated and stored ticket still holds value, but in the dark recesses of cyberland. (not a techical term).

An airline ticket usually holds its value for a year from the date issued, though a few airlines make it 90 Days. While most tickets are nonrefundable, you can still apply the value of the unused ticket toward the purchase of a new ticket.

For some airlines, the value of an old ticket can only be applied to one ticket in your name. You must use it in its entirety or lose the value remaining, which in your case was $300. (Use it or lose it, so to speak.) And then some airlines will reissue the ticket and apply the remaining value to a Miscellaneous Charge Order or MCO for future use on another ticket, so you realize the old ticket's full value.

Now let's talk about penalties (you knew this was coming). The airline will charge a penalty of $50 to $100 for the exchange (more for international flights). And again some will allow you to take the penalty value out of the old ticket's value while others will not.

You have a few options to use the entire value in a case where the airline won't issue an MCO:

1. Reissue the value for a higher first class ticket or business class. (If it's a business trip, be sure to clear this with your Travel Manager or the next trip you book will be to the doghouse.)

2. Expand your itinerary to include another city. Perhaps to visit a branch office, meet with a new client or inform a prospect (or my favorites: take in a show, shop, eat and sightsee).

3. If you have several future trips planned, make sure you reissue the old ticket against your highest cost itinerary.

In the future, you may consider buying a refundable ticket if the price difference is negligible or if history tells you the trip's status is up in the air or on the verge of cancellation.