The only time airlines are required to compensate inconvenienced customers is when they're bumped from an oversold flight. In that case, all the airlines should offer pretty much the same deal: They'll put you on their next available flight. If you reach your destination one to two hours later than originally scheduled, they'll pay you 200 percent of the one-way fare (up to $650). More than two hours later, and you're entitled to 400 percent (up to $1,300).
So far as I am aware this compensation only applies to IDB (involuntary denied boarding). If you are voluntarily bumped or didn't follow the rules or got lost or showed up late then you're at the mercy of whatever the airline decides to offer you, if anything. The idea that even a serious delay which could potentially make an entire trip completely worthless is only compensated up to an absolute maximum of $1,300 is downright laughable. Thousands of published fares already exceed the maximum compensation level. When you add the loss of hotel nights on credit backed reservations, new last minute hotel bookings, forfeited event and activity charges, meals, and taxis that level of compensation is likely to only amount to a tiny fraction of the total financial impact for a serious delay. The suggestion that passengers can win better treatment by clumsily quoting the contract of carriage to an airline agent is even more ludicrous. Which of the fifty odd pages of liability restrictions and exclusions are you going to quote in your defense? The contract was written by the airline you're arguing with. Following a lopsided anti-consumer agreement to the letter will probably only make things even worse. The contract is there to dissuade you from asking for too much.
On my gfs recent return flight to IAH from JFK on United, due to a shortage of pilots, she missed her connection from IAH to ABI and was put up over night @ an Airport Hotel, given a Food Voucher and United flew a Special Flight the next morning to AUS for the dozen or so pax that missed their connections to AUS. This is good customer service IMO and basically unheard of these days!!!
United does that even on international legs. One time we were stuck in Tel Aviv due to a blizzard in New York. lo and behold, the next day there were three 777s lined up to clear the backup from the previous day of snow storm driven cancellations (there are two 777 flights a day between EWR and TLV by United. And I even got a complementary upgrade to lie flat seat BF to boot, so I was a happy camper for being forced spend an additional day on the Mediterranean beach in TA. Frankly I have no idea how they shuffled planes through that mess in New York.
I was once VDB'd from a 2.5 hour flight out of SFO on UA and spent another day vacationing in the bay area on UA's dime.
As compensation I received the following...
Upgrade from coach to first class
Paid stay at the Hyatt Regency
International amenity kit
Food credits for Breakfast, Lunch, & Dinner
$600 worth of stackable travel coupons
That being said there is no way I'd ever imply that this is company policy or that most travelers would receive anything like this. It was just an example of being in the right place at the right time with the right knowledge. If you travel often enough you may eventually bump into a situation you can turn to your advantage, but most travelers will probably never see anything like this in exchange for a domestic bump. Most of the time I do what I can to limit connections and avoid airports known for poor weather. I guess because I'm one of the few Americans who has actually bothered to learn my actual rights ahead of time and I already know that they're borderline useless in the vast majority of situations. Contrary to the recommendations given in this article I would suggest travelers ignore the contract of endless exclusions. I would instead suggest they learn how to read body language so they can calmly and rationally deliver a concise and compelling story that is applicable to the situation.