Travel firms warned over refund fiasco

PACKAGE holiday firms have been warned against any repeat of the refunds fiasco of last year.

Many firms failed to pay proper refunds within the legally required 14 days after overseas travel was banned by the Government.

The Competition & Markets Authority stepped in last year and made sure that five major holiday companies paid more than £200million in refunds.

And it has now written to 100 of the biggest package holiday firms putting them on notice that they must not let customers down again this year.

Transport Secretary Grant Shapps has paved the way for a resumption of foreign holidays – but the situation remains fluid and the emergence of new variants could see travel plans cancelled.

The CMA’s letter reminds the firms of their legal obligations and of the need to ensure refund options are clear and accessible. The rules state that trips cancelled by holiday companies must be refunded within 14 days under the Package Travel Regulations.

Any offer of a refund credit note must be accompanied by the option of a full refund and customers should be able to exchange their credit note for a refund at any time.

People also have a legal right to a full refund where they decide to cancel because unavoidable and extraordinary circumstances at the destination significantly affect the holiday they have booked or their travel there. This would apply if the Foreign Office advises against travel to the package holiday destination.’

Andrea Coscelli, chief executive of the CMA, said: ‘We want to make sure people are fully aware of their refund rights, so they can make informed choices about booking a holiday. We’ve secured millions in refunds for people… and now we’re calling on package holiday companies to make the refund process less hassle in the future.’