Why are travel businesses offering credit vouchers instead of cash refunds?

desklamp

I am dealing with an ABTA member holiday company whose terms on their RCN are contrary to the guidance laid down by ABTA, and to which it’s members are expected to adhere to.

ABTA states:
“A Refund Credit Note preserves your right to a cash refund, which can be redeemed at the latest at the expiry date of the note.”

Sunweb.co.uk (An ABTA member states):
“...you can request a refund from Sunweb. Please note we will not process any refund requests prior to the expiry date [of the RCN]. The transfer will then occur within 3 months after the expiry date and request for a refund”

For the avoidance of doubt, the definition of redeem is to get back.

ABTA will really need to take action to maintain even the faintest slither of respect.

jcollector

Can anyone provide more clarity on the Refund Credit Notes? Specifically, each RCN is supposed to contain the date by which the RCN can be redeemed for cash. How is this date determined? Does the tour operator have sole discretion on this or is it something open for negotiation?

Westin

jcollector said:

Can anyone provide more clarity on the Refund Credit Notes? Specifically, each RCN is supposed to contain the date by which the RCN can be redeemed for cash. How is this date determined? Does the tour operator have sole discretion on this or is it something open for negotiation?

I believe the RCN validity should be linked to any financial bonding date of the Operator.  

desklamp

https://www.which.co.uk/news/2020/04/should-i-accept-a-holiday-company-or-airline-voucher-do-i-have-to/

Butts

Excellent article clear, concise and to the point.
My operator Last Minute actually get a mention as one of the rogues trying to apply a fee to cash refunds.

RichieB2

I’ve managed to get a refund out of Air New Zealand who have been reasonable having previously offered only a voucher (although they have advised it might take 8 weeks to refund my CC). I emailed and pointed out that we could not use the voucher due to other already arranged holiday commitments and the fact that they are pulling out of the route in October 2020 (they cease the Heathrow to LA route then). I also mentioned the EU legislation but I suspect it’s the route cancellation issue that made the refund easier to achieve. So out of car hire, hotels, trips and flights it’s only the £89 airport NCP car parking bill thats not refunding. So whilst not perfect it’s by no means a disaster. 

bobblebob

Having a nightmare with Funway travel. They refuse to give cash refunds and said i need to claim on travel insurance if i want cash. Travel insurance company said no, as ive been offered a voucher im not covered.

43722

43722 said:

fifeken said:

Most flights discussed on here are discretionary spending, so no one should be hurting too much and can afford to wait or take a voucher, but would rather demand their rights with no though of the big picture or long term effects.

How would any of us know what is and what is not discretionary spending for another individual? People often choose specific breaks,at specific venues, at particular times. It has been shown here that people cannot reschedule easily. It is up to the Travel Industry,along with the government,to sort out any issues, but the right to a refund is absolute inmost cases as the law currently stands.

The point is that people had chosen a specific booking, a specific holiday, and a specific time. They may not want, for whatever reason, to move that holiday. 

bobblebob

Can you not report agents that refuse to refund in cash to ABTA (those that are members)? Even ABTA are telling members to refund in cash

kb81

Obviously most of us would be understanding if we were told there was a small delay on receiving refunds due to coronavirus 

But is there a legal time frame companies have to issue our refunds?

ive been told when flight ban ends + 2 months, with the indefinite advisory re travel at the moment that equates to indefinitely + 2 months

i noticed martin asked in the interview on the show last night but didn’t get the question answered.