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

gmaria25

We have flights booked for Florida. The outgoing flight appears to be going ahead but the return flight has been cancelled. This is after the 30 day ban by the USA. Flights are April 21st and were scheduled to return 1st May! I need a refund! 

Nebulous2

I'm currently in New Zealand. Due to fly home on 8th April with Singapore Airlines.  Booked with lastminute. They've emailed to say my flight is cancelled and they've requested a voucher! 

No cash, no alternative flight, and specifically asked not to call them, so what on earth are we expected to do? 

Lulibel78

I’ve got a non-refundable hotel booking for 23-26th March in Iceland through Booking.com. Hotel is offering a voucher but don’t know when I will
be able to go there and so want a refund. Should I cancel the booking and claim through my travel insurance? Any advice welcome. Thanks.

RichieB2

gmaria25 said:

We have flights booked for Florida. The outgoing flight appears to be going ahead but the return flight has been cancelled. This is after the 30 day ban by the USA. Flights are April 21st and were scheduled to return 1st May! I need a refund! 

I’d be amazed if the FCO ban on all but essential travel to the US was not extended plus I could also see the US extending the ban on UK flights to the US too. At that point your insurance would likely pick up the tab or if it’s an EU airline you should get a refund anyway under EU law. But in this market some of them are that desperate they seem to be doing what they like. Don’t forget about any credit card section 75 protection too. 

RichieB2

Lulibel78 said:

I’ve got a non-refundable hotel booking for 23-26th March in Iceland through Booking.com. Hotel is offering a voucher but don’t know when I will
be able to go there and so want a refund. Should I cancel the booking and claim through my travel insurance? Any advice welcome. Thanks.

Has the hotel cancelled the booking ie are they closed. If so I don’t see why you would not get a refund as they cannot provide the service. FCO advise against travel so I guess if they won’t refund then its over to the travel insurance. I would imagine that the insurance company will chase the hotel if they should of refunded. They won’t want to pay if someone else should of paid. 

percentxxx

Re credit notes, after the Ryanair/ Monarch thing a few years back , T.Cook last year, Now this lot with possibly 3 trips lost ,at 70 yrs old , I feel I have just about had it with going abroad ,too much stress and time wasted chasing and hoop jumping for refunds, three credit notes from three different companies later in the year are not a lot of use to me , I want my money back to spend How I wish and not be forced to go on holidays that I could not fit in with other plans 

Westin

It seems at last some guidance being issued by the EU and importantly a suggested provision to ensure those travel customers who accept a credit voucher from a tour operator in lieu of a cash refund have protection should the travel provided ultimately fail.

It also importantly suggests the credit voucher could later be redeemed back to cash, or at least a monetary refund.

Reported this evening by Travel Weekly - 

“The European Commission is now advising that customers take credit notes for package holidays cancelled as a result of the coronavirus, as long as they can ask for a full refund eventually.

Abta called on the UK government to follow the same lines in its own guidance on the Package Travel Directive (PTD).

Crucially the Commission states that the credit note should be covered by appropriate insolvency protection. This is an extremely positive step and shows that the Commission recognises the strains being placed on tour operators due to Coronavirus.

The Package Travel Directive is the legal framework on which the UK Package Travel Regulations are based, and we now need the UK government to follow the European Commission’s lead and confirm a similar approach.

This new guidance will give customers the essential assurance that they will either get a holiday or their money back, as well as providing a much needed helping hand to travel companies through these difficult and unprecedented times.”

Source: Travel Weekly

https://www.travelweekly.co.uk/articles/363980/coronavirus-package-holiday-customers-advised-to-take-credit-notes

tberry6686

To be brutally honest.  For most people, accepting a credit note etc would be crazy.  At this point it is easy to predict that a lot of airlines and travel agents will not survive this shutdown period.  Who is going to pay for all these credit notes then ?

tudorfan39

Just a thought, if we’re not happy with a credit note, is it time to go down the chargeback/section 75 route? 

Westin

@tberry6686:  I raised this position of assurance of the credit voucher value for those such circumstances where the travel provider ultimately fails.  It seems that this is now possibly being addressed.  For those who had booked a holiday that had ATOL protection,  my view is that an issued credit voucher should sit under the ATOL scheme, treating the credit like a cash payment.  Such news might encourage many to help the travel industry out and accept a credit.