Are you due a holiday refund?
The travel industry is calling for the Government to amend refund rules to help firms survive.
A trade association wants companies to be allowed to offer credit notes as a short-term measure.
Travel firms will collapse and taxpayers will be left with a multibillion-pound bill unless UK refund rules are amended, a trade association has claimed.
ABTA wants the Government to allow companies to offer credit notes as a “short-term alternative” to cash refunds because of the deluge of claims caused by the coronavirus pandemic.
Under EU law, travel companies must refund customers within 14 days if their holiday is cancelled.
But many travel firms will be unable to survive if they are forced to pay cash refunds immediately, according to ABTA.
This is partly due to a delay in them receiving money back from airlines and hotels.
Countries such as France, Italy, Belgium, Spain, Germany, the Netherlands and Denmark have amended their refund rules on a temporary basis, and ABTA says the UK must also take action.
Refund credit notes could be exchanged for an alternative booking or a full cash refund at a later date.
They would be financially protected, ensuring consumers’ money would be secure.
ABTA warned that if the UK does not change its policy, firms will be pushed into bankruptcy, leaving the Government, which acts as the financial backer for the UK’s main ATOL scheme of holiday protection, with a bill of up to £4.5 billion to refund customers.
Mark Tanzer, ABTA chief executive, said: “We know the Government has a lot to manage with the current crisis, but its failure to make these temporary changes to refund rules defies logic and is leaving the consumer in no-man’s land.
“The rules around 14-day refunds were never designed for the mass cancellation of holidays, which we’re now seeing as result of Government measures to contain the pandemic.
“It’s in nobody’s interests for normally healthy, viable businesses to be pushed into bankruptcy.
“Hundreds of thousands of jobs are at risk and the UK taxpayer will have to foot the bill for customer refunds if there is an industry-wide collapse of travel businesses.
“It’s important to reiterate, this is about supporting businesses through an entirely unforeseeable and short-term cashflow crunch – customers will not lose their right to a refund, and their money is not at risk.”
A senior figure in the travel industry Kane Pirie who was on the board of ABTA believes that travel companies should be refunding customers with cash and not with credit notes.
He said in an interview with the Independant newspaper “A lot of travel companies are really short of cash. I get that. But a lot of customers are really short of cash as well. And they want their money back. It’s a disgrace that parts of the industry are thinking now is the time to tell customers, ‘No, I know you’ve got a legal entitlement to this money but I’m not going to give it to you’.
Kaine Pirie has started a campaign called ‘It’s Right to Refund’.
What are your views? Have you had holiday plans cancelled due to the pandemic? Have you received a cash refund or credit note? What would you see as a fair resolution for your personal circumstance?
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Curiously, Kent & Sussex Cottages have changed their policy to suit themselves and now I will not be getting a refund. There are some shabby and despicable practices going on at present and some companies are taking full advantage of the situation, which is shameful. I certainly won't be using these companies again and I hope everyone else remembers how customer service (yes I'm laughing too!) was conducted during this crisis. Those running these companies will no doubt be sitting on some sifted away funds (or refunds as we like to call them!) when this is over whilst having got rid of their loyal staff and customers.
Initially in doubt as Flybe went bust
Now we have to rebook another date and pay difference or travel next year
If we cancelled would have lost air fair = to deposit
Qatar Airway got us home, after we paid for flight home, cost of refund won’t nearly cover it
She did get a cash refund months and months later.So hang on in there if you want a cash refund stick at it .
EasyJet have cancelled my 20th April flight from Manchester to Tenerife but are only offering a change or voucher and my 8th May return flight hasn't yet been cancelled. As I already have flights booked for later in the year, which I expect to also be cancelled, I don't feel 'Change' is an option and would want a voucher for 2021 or even 2022. I've definitely lost £55 on cheap!! airport parking that I took out within the last month and didn't think to pay the £1.50 extra for cancellation cover.
I can sympathise with the airlines and holiday companies wishes for people to use the change or voucher option and if we still want them to be operating in the future, we should try, if we can afford it, to not go for the refund. We've already spent the money and we aren't going anywhere for the foreseeable future. I just hope the airlines are generous with the time frame for their coupons.
For anyone thinking of re-booking, I'd recommend looking at next year at the earliest. My friends in Tenerife have been on Spain's very strict lock down for a month. There is some evidence that it is starting to work but the local government are suggesting that, if it continues to improve, they may consider allowing domestic tourism from July with limited international tourism from October. Of course this will also depend on which countries they allow to fly in!
Due to go on my main trip to South America at the end of August if that still goes ahead - if not I might get my flights back but the holiday itself was with a private operator and I paid the deposit which was more than a third of the holiday and was for a once in a lifetime trip so was very expensive anyway. I am not sure if I would get my deposit back as their website doesn't even mention anything about coronavirus.
I hope you enjoy being part of our community.
Melina
All debatable. Would like to have my money back. After all this probably won't go again anyway.
I tried it once on a single holiday but after a tiring day coming back to my hotel and my room, to find a female uninvited in my room I decided that a holiday is not really my thing if things like that happened.
I have also booked to go away later in the year so sitting and hoping by then things will be almost back to normal.
Under the present unique emergency situation, I am prepared to accept a credit note (with it's Government guarantee). After all, it's money that would have been spent anyway.
I presume that if I book a cheaper holiday in the future, I would get the balance back in cash, not a voucher!
As long I was given the credit note I would be reassured that my money was safe and that I could then book another holiday when I wished.
If some of the travel firms go bust then that means less competition and higher prices.
Just look at the prices of last minute holidays after Thomas Cook collapsed.
14 days is far too short a period in this situation.
Hotels and Airlines will have been paid.
Interaction between parties to claim recompense will take time,
so I for one am grateful that so far my family and I have taken the necessary precautions and have luckily we have managed to stay symptom free.
Many, many people would lose their livelihoods.
In the bigger picture ensuring our health and surviving is a far bigger issue.
I am far more worried about all our key workers having to go about their daily duties knowing that this virus is non discriminate in who it chooses.
Special thoughts and deep admiration to the NHS staff and Carers on the frontline.
Deepest sympathies to those who have lost loved ones.