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

Life__Goes__On

At the moment you can expect prices for 2021 to be high.
They are  trying to rebook people  for 2021 and give them vouchers  so a very captive market.

Once people with cash  start to shop around, then expect prices to fall.

epm-84

Life__Goes__On said:

At the moment you can expect prices for 2021 to be high.
They are  trying to rebook people  for 2021 and give them vouchers  so a very captive market.
Once people with cash  start to shop around, then expect prices to fall.

No-one is going to accept a voucher which can't be used to book the equivalent holiday next year, so if the 2021 holiday is being advertised for 106% of the 2020 price, the customers won't accept anything less than a voucher for 106% of the price they paid.  

You could question why anyone would want a voucher if the 2021 holidays are on sale, when they can just postpone their trip but maybe as Summer 2021 flight schedules are TBC some people want to find out what's happening with flights first e.g. will BA withdraw all Gatwick flights, which routes will other airlines cut/introduce and which routes are going to have to inconvenient flight times like a 6am departure or a 20 past midnight arrival.

MollieDaisy

Just need bit of clarification,do you need to book and take holiday with voucher before expiry date or as long as you book an 
 holiday before expiry date can it be say 2022

Westin

You don't mention who you have booked with/credit note issued by - but general rule of thumb I think is that the date on the credit note is the book by date rather than travel date.   Can you post who issued the voucher and what it says about usage?

Roch123

hi there, I have a 110% voucher from March 2020 on a trip with Intrepid travel, now with no expiry date, I have held on to the credit, supposedly a refund should be available if we change our mind, would it be wise to go for the refund at this stage? Bit of a magic ball question, but trying to gauge if travel companies are likely to go bust and potentially go back on their refund offers? Thank you