REFUNDS, REBOOKING & YOUR RIGHTS

TRAVEL OPERATORS AND AIRLINES HAVE COME UNDER FIRE FOR OFFERING CREDIT — OR NOTHING AT ALL — RATHER THAN REFUND CONSUMERS FOR TRIPS CANCELLED DUE TO COVID-19. WHAT OPTIONS DO CONSUMERS HAVE? WORDS: SARAH BARRELL

A long time ago in a reality far, far away — or, in other words, early March this year — travel-related hashtags started making the rounds on social media. ‘Postpone don’t cancel’, ‘rebook don’t refund’ and ‘defer don’t drop’ were variations on the clarion call from champions of industry as countries started shutting down, and people began assessing the likelihood of imminent trips being able to go ahead.

It was a sentiment that, at the time, had some traction with consumers keen to support businesses and communities at their chosen destinations (and even keener to keep the faith that a holiday was still within their grasp). But as borders closed and airlines began bulk-cancelling flights, it became apparent that coronavirus’s impact would be more severe and long-lasting than originally thought, so people started seeking refunds in earnest.

“Since the UK entered lockdown in March, Which? has heard from thousands of passengers who have had their trips cancelled and been left without their money as airlines and holiday operators continue to delay or simply deny them their refunds on a massive scale,” explains Rory Boland, editor of Which? Travel.

“We know the industry is under immense pressure as a result of the pandemic, and don’t want to see it suffer further. But it can’t be on consumers to prop up airlines and travel firms through this period as companies openly break the law and effectively use customers’ money as an interestfree loan, especially when many of those waiting for refunds are also in difficult financial situations.”

“Consumers are entitled to a refund — it’s the law. This hasn’t changed during Covid-19,” says Kane Pirie, founder of VIVID Travel and managing director of the Right to Refund campaign. “2020 has been brutal for us, with massive cash outflows only made possible with additional finance from me as the main shareholder. Many other owner-managed tour operators have also done the right thing: followed the law and refunded customers. Several larger tour operators could refund but refuse to do so.”

The companies who get this right will have invested well in their futures. “We’ve avoided mass cancellations by speaking to each client to talk through their options,” says Derek Jones, UK chief executive of DER Touristik, parent company of a number of big tour operators, including Kuoni. A vocal advocate of industry unity rather than refund campaigns, Jones says: “There’s still clearly an appetite for travel. With a compassionate approach, we’ve managed to persuade the majority of our customers to rebook in 2021.”

But are those new bookings safe? Predictions of zombie travel companies staggering into 2021, taking bookings, then falling insolvent just as those new bookings or credit notes become redeemable are legion. The precarious state of the airline industry adds to the problem.

Which? was among several consumer rights groups to lobby the government’s Competition and Markets Authority to investigate companies breaking the law on holiday refunds.

“Which? wants to see the regulator come down strongly on any airlines found to be systemically denying or delaying refunds for cancelled flights and holidays,” says Boland. “And for the government to set out how it will support the industry, allow airlines and holiday operators to refund passengers, and restore trust in the sector.”

More information: which.co.uk/travel gov.uk/foreign-travel-advice caa.co.uk/atol-protection abta.com/tips-and-advice

Package holidaymakers whose trips are cancelled are entitled to a full refund within two weeks.

If you cancel your trip because you don’t want to travel, it’s not a given that your travel company will refund you. Wait until it cancels the trip, then rebook or request a refund.

If your company doesn’t cancel, and the Foreign & Commonwealth Office (FCO) is still advising against all but essential travel, your policy may cover you for cancellation if you bought travel insurance before coronavirus became a ‘known event’ on 13 March 2020.

You may be able to claim on purchases made with a credit card via Section 75 of the Consumer Credit Act, and even some debit cards via the ‘chargeback’ scheme. This is usually only successful if you can prove your travel provider is refusing to give you a refund or has gone out of business.