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 interest-
free 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 ofindustry 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.”IMAGE: GETTY
If an EU airline cancels
your trip, you’re
entitled to a refund or
a rebooking. You don’t
have to accept credit or
vouchers. Beyond the EU,
it depends on the terms
and conditions of your
carrier or travel agent.2
Package holidaymakers
whose trips are cancelled
are entitled to a full
refund within two weeks.3
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.4
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 2020.5
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.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 BARRELLHOT TOPICYOUR RIGHTS
More information: which.co.uk/travel
gov.uk/foreign-travel-advice
caa.co.uk/atol-protection
abta.com/tips-and-adviceI READ THE EXTENDED VERSION OF THIS ONLINE AT NATIONALGEOGRAPHIC.CO.UK/TRAVELTRAVEL GEEKS
Jul/Aug 2020 137