Grounded? Don’t bank on a payout

Secret blueprint for a no-deal Brexit reveals shock if your holiday is hit...

HOLIDAYMAKERS face not being compensated if their vacation is cancelled due to disruption caused by Brexit, according to a top secret travel industry report leaked to The Mail on Sunday.

The Association of British Travel Agents (ABTA), the packaged holiday trade body, is encouraging member companies to insert ‘Brexit clauses’ in their terms and conditions to prepare themselves for potential turbulence if the UK leaves the EU without a deal.

The guidance is contained within a confidential blueprint that has been sent out to ABTA’s members – which number more than 1,000 – to prepare them for the possibility of a no-deal.

The body is also advising travel agents on how to ramp up charges for holidays that have already been booked if their costs increase due to a fall in the value of the pound.

This could mean that holidaymakers are sent unexpected bills that they must pay on top of the advertised price of their trips.

Thomas Cook now rules out ‘compensation, damages, expenses, costs, losses or any other amount of any description’ in the event of disruption due to a no- deal Brexit, although it will offer refunds in the event of cancellation.

On The Beach’s conditions do not even guarantee a full refund.

Under the title ‘Brexit Implications’, On The Beach state that in the event of Brexit disruption ‘we will endeavour to provide suitable alternative arrangements or refunds where possible [but] we will not be liable to pay you any compensation’.

The ABTA document, which was first sent out in August and will be updated periodically as Brexit looms next March, was prompted by a perceived ‘lack of progress’ in UK-EU negotiations.

‘ABTA believes it is now prudent for members to consider in more detail the implications of the UK departing the EU under a no-deal scenario,’ it says.

The report contains several warnings about a ‘no-deal scenario’, saying Britons could be forced to obtain visas to visit EU countries. Alternatively, if the UK agrees nonvisa access to the rest of Europe, visitors may need to buy electronic travel authority (ETA), at a cost of €7, which would last three years.

The body also predicts that a nodeal exit would initially lead to ‘considerable disruption at borders’ between the UK and EU, if Britons are no longer allowed to use queues for people who live within the European Economic Area.

There would also be ‘serious challenges’ for the aviation industry, the report says, which could have to rely on the UK agreeing new access rights for its carriers to travel into the EU and other countries that are covered by EU rules.

The warnings echo the pessimistic tone of Michael O’Leary, the Remain-supporting boss of Ryanair, who last month claimed certain flights could be grounded. Last month, the Government also said flights could be grounded in the event of a no-deal exit. In the event of Brexit disruption, ABTA is advising its members on how they can keep their costs at a minimum, sometimes at the expense of their customers.

The body recommends that while travel agents should provide their customers with refunds if t hei r package trips cannot go ahead, organisers ‘would not be liable for additional compensation’. It says this is because a nodeal Brexit, and issues arising from it, can currently be considered ‘unforeseeable and unavoidable’.

There is more uncertainty where holidays are not packaged up. For instance, if a flight is cancelled but not a hotel, then the accommoda- tion provider ‘is unlikely to offer a refund’. It is unclear whether the flight provider would need to compensate, ABTA said.

The ABTA document also raises the prospect of travellers being charged extra for holidays that have already been paid for i f the pound falls in value. This can happen on the condition t hat a company reserves the right to introduce surcharges, travellers are informed at least 20 days before their holiday and the firm absorbs equivalent to 2 per cent of the total holiday cost due to currency changes.

The guidance recommends that ABTA members consider amending their terms and conditions to introduce ‘Brexit clauses’ to make clear that, while refunds will be provided, compensation will not. ABTA also notes that Britons may need to apply for international driving licences for use in the EU

An ABTA spokesman said: ‘Anyone who books and pays for a package holiday through a UK travel company will receive a full refund for that holiday if it cannot be provided due to Brexit.

‘As Brexit is a situation which is beyond the control of travel companies, customers will not be entitled to compensation.

‘If you book an individual travel service – e.g. a flight or a hotel – the supplier’s terms and conditions will apply. They would usually offer a refund if the service cannot be provided. If Brexit was the reason, compensation is unlikely to be available, as it would be deemed beyond the control of the travel service provider.’

ABTA is advising members on how they can keep costs to a minimum – at customers’ expense