Year-and-a-half wait for EU holiday refunds

Consumer rights on a collision course with tour companies desperately trying to keep afloat

Holidaymakers may have to wait up to 18 months for refunds on cancelled trips to Portugal, Italy or France, under an Eu-approved scheme. Travel experts said several countries have issued decrees meaning hotels booked directly can offer credit vouchers instead of cash refunds for holidays between March and September. They would be valid until Dec 31 2021, after which money would have to be given back. France and Italy were among countries that endorsed the vouchers.

HOLIDAYMAKERS may have to wait up to 18 months for refunds on cancelled trips to Portugal, Italy or France, under an Eu-approved scheme.

Travel experts said several countries have issued decrees meaning hotels booked directly can offer credit vouchers instead of cash refunds for holidays between March and September, valid until Dec 31, 2021, at which point the money would be refunded.

With the global lockdown making international travel largely impossible, thousands of summer holidays were cancelled or in put doubt, placing a huge burden on the tourism industry, with fears that a deluge of refunds could cause firms to collapse.

France and Italy were among countries to have backed vouchers, while EU Commission guidance last month urged member states to make the vouchers “attractive” by guaranteeing them in the event a firm went under.

Abta, the Association of British Travel Agents, has called on the Government to support the industry by introducing measures to strike a balance between protecting consumer rights while preventing an industry-wide collapse.

Martyn James, of consumer complaints service Resolver, said any changes would not affect travellers’ rights to a refund if package holidays or flights were cancelled.

“However, those who booked a hotel directly or via a third party website could find that they would have to accept a voucher.

“We are about to enter a whole world of confusion about what travellers are and aren’t entitled to,” he said.

“If you do accept a voucher, ask the hotel to confirm what your rights are and if in doubt ask them to confirm in writing what you are entitled to.”

Paul Charles, a travel expert at the PC Agency, said the Government should step in to protect the industry. “Travel companies are trying to restore confidence in the industry, which is something the Government is not doing,” he said. “They say they are following science. At some point, they need to use their own intelligence to open up the travel industry.”

Among policies discussed were socalled “air bridges”, bypassing the need for travellers to quarantine.

Under the terms of the changed policies, most travellers with hotel bookings could have to wait until the end of next year to claim a full refund.

Under EU law, customers should be refunded for a cancelled flight within seven days or a cancelled packaged holiday within 14 days – but vouchers could only be given if the traveller agreed.

The EU Commission said last month that if a large number of travel firms collapsed and there was a risk of people not getting their money back, vouchers could be an alternative.

Its guidance said vouchers should be protected and ideally valid for no longer than 12 months.

Meanwhile, travel firms in the UK attempted to kickstart domestic holidays by offering bookings for late summer with highly flexible cancellation policies. And travel firm Kuoni this week launched its first Uk-based holidays.

It was currently against lockdown rules to stay at a location away from your home, including holiday accommodation. The Government had said that it would encourage staycations as soon as it was safe to do so.

12

Number of months for which holiday vouchers instead of refunds should be valid under EU recommendations