Don’t lose out on your Covid-cancelled holiday

Make sure to spend your refund credit notes before the validity and financial guarantees expire, writes Nick Trend

It seems, touch wood, the Covid endgame is at last being played out. But there are still complications for those who had flights and holidays cancelled due to the pandemic and have not yet received a refund or have unused credit vouchers.

This week, the Civil Aviation Authority (CAA) warned that £85million of holidaymakers’ money remains tied up in refund credit notes (RCNs) issued because of such cancellations. Any notes not spent before Sept 30 this year will no longer be protected by the Atol scheme, meaning that if the tour operator goes out of business, you’ll almost certainly lose your money.

The concept of financially protected RCNs was introduced in July 2020 as a way of dealing with the crisis caused by the collapse of international travel in the early months of the pandemic. Almost all airlines and tour operators were struggling – both financially and administratively – to meet their legal obligations to issue refunds for cancelled holidays and flights. (And some, it has to be said, seemed to be doing their best to cling onto as much of their customers’ money as they could.)

RCNs were a way of giving breathing space to companies – helping them avoid potential financial catastrophe, while still offering financial protection to consumers. Instead of insisting on a cash refund, customers could accept the credit note and look forward to spending it after the pandemic. Most airlines also offered credit vouchers

If you have had a problem with your holiday or travel arrangements, contact our troubleshooter, Gill Charlton, or our consumer expert,

Nick Trend, at the email address below.

We also have more than 150 destination experts all over the world who can help with suggestions for great places to stay, to eat and to visit. Please email asktheexperts @telegraph.co.uk, giving your full name and, if your query is about a dispute with a travel company, your address, telephone number and any booking reference. We regret that we cannot personally answer all queries, but your email will be acknowledged. for cancelled flights, although these do not enjoy the same protection.

So make sure you spend the money before the validity and the financial guarantees expire. Here are the key points to watch for:

REFUND CREDIT NOTES

If you have an Atol-protected RCN issued because your package holiday was cancelled due to Covid, do one of the following before Sept 30 2022:

1. Request a refund. This is the most straightforward approach for most people. Then you can choose when and if you decide to book your next holiday.

2. Use the voucher to make a booking with the tour operator that issued the refund. If that booking is a package holiday that includes flights, it will continue to be protected.

AIRLINE CREDIT NOTE OR E-VOUCHER

Vouchers for Covid cancellations of flights that weren’t booked as part of a package operate differently and are subject to the policy of the issuing airline. Double check the terms and conditions and make sure you use the voucher to re-book before the expiry date. (In some cases it may be possible to get a cash refund as an alternative, but it depends on the policy and the circumstances.) Many airlines issued vouchers that were valid for only a year from the date of issue and there may be restrictions on how far ahead you can book and use them. Others have a much longer time frame. British Airways vouchers are valid for flights and bookings made by Sept 30 2023 (you must have completed all booked flights by that date), Aer Lingus gives you five years’ grace and a handful of airlines – including Air Canada – have no formal limit on validity, although that could change. A few airlines also allow you to extend.

NEW BOOKINGS

All package holidays sold in the UK and EU must be protected by law. But check the details before booking. Those that include flights must have an Atol (caa. co.uk /atol), but there are other schemes for those that don’t. Packages sold by members of Abta (abta.com) and Aito (aito.co.uk) are protected. Airlines selling flight-only tickets do not generally have to protect customers’ money, but you can buy special insurance (look for “scheduled airline failure” cover) and booking and paying using a credit card will cover you in the event of a failure.

All package holidays sold in the UK and EU must be protected by law, but check the details before booking