100 holiday firms get a payback warning
COMPETITION watchdogs have warned 100 package holiday firms they must give refunds promptly for breaks cancelled because of Covid-19 – or face the consequences.
More than 23,000 people have complained to the Competition and Markets Authority about problems getting their money back after trips were called off because of the virus.
Now the watchdog has written to the 100 most complained about firms, saying if they don’t provide refunds within 14 days of cancellation, they are breaking the law – and the CMA will act.
Its warning comes as restrictions on international travel ease. Under the Government’s new traffic light system, foreign destinations will be ranked according to their safety.
And, with some new coronavirus variants causing concern, there are fears the rankings could change unexpectedly. The CMA has already taken action over late refunds against five package deal firms – Tui, Teletext Holidays, Virgin Holidays, Love Holidays and Lastminuite.com. And it has secured £200million for consumers. Chief Andrea Coscelli said: “We want to make sure people are fully aware of refund rights, so they can make informed choices about booking a holiday.
“We’ve secured millions in refunds for people who couldn’t go on trips over the past year.
“Now we’re calling on package holiday companies to make the refund process less hassle.
“We expect all firms to give clear cancellation options and will consider appropriate steps if we see companies breaking the law by refusing or delaying refunds this summer.”
Tui yesterday said it will make it easier for customers to claim refunds.
Elsewhere, Rolls-Royce expects its cashflow to turn positive in the second half of 2021, as air travel resumes. The firm suffered in the pandemic as it makes most of its money servicing the plane engines it builds.