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

SevenOfNine

bobblebob said:

"ask for a full refund eventually" seems very vague. What defines eventually?

Here is link to the article referred to in the Independent https://www.independent.co.uk/travel/news-and-advice/package-holiday-refund-rules-suspended-abta-coronavirus-a9417261.html

My problem with this 'eventual guarantee' of a refund is that when you aren't getting any younger &/or with some medical issues, travel insurance becomes increasingly expensive.  So we may just end up waiting for 2 years for a refund, just being an involuntary (& resentful) lender of £4,400. 

langers638

Check out Sykes Cottages. No refunds. Their reply is to tell consumers that Sykes Cottages can afford good lawyers to check their booking conditions and they don't have to refund!!!  And they are looking forward to defend themselves gleefully in the courts!! Slime balls.!
Then they say we can rebook at a future date and if it costs more well WHO CARES!! 
DON'T BOOK WITH THIS SELFISH COMPANY JUST LOOKING AFTER THEMSELVES AND RICH INVESTORS. 

cupofteaneeded

I am also having the same issue. Due to go to Bali and Cambodia for a family wedding.  Due to fly with air asia from Bali to Cambodia connecting in Thailand. Got an email to advisde that the thailand to cambodia leg had been cancelled, and that I could obtain a full refund. That option has now been taken away with the options being Just a credit note or move the flight. I don't know if/when this weddding will take place and so I don't want to be tied in with air asia for a flight that may never be used. Would the travel insurace think that sufficent as they have offered something? Or should i go down the credit card route? Thanks. 

desklamp

Westin said:

It would seem that the Transport Secretary, Grant Shapps is reportedly set to approve the use of credit instead of refunds.

The European Commission (EC)  has already relaxed regulations around customer claim refunds amid the corona covid-19 virus pandemic. 

Customers are being encouraged to accept credit notes as long as they can ask for a full refund at a later date – if it is not used towards a new booking.

The Independent reports  ABTA as saying that "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."

Also, according to The Independent, the Transport Secretary will agree to the same change in the UK, with any customer not redeeming their voucher able to claim the sum in cash. If a company were to fail before the credit note is cashed, financial protection will be provided by the Atol scheme.

Seems a very sensible move for all parties.

Two points,

First, what if the holiday company is ABTA but not ATOL, does this mean no financial protection on the voucher if the holiday company subsequently goes bust?

Second, what about the thousands of people who are unable to accept a voucher due to their present financial issues?

I have lost my faith in many holiday companies, as that they have seem to blatantly lie and try to deceive their customers on their rights, and then claim pity as well as asking for retrospective change in consumer protection legislation. In theses circumstances it seems difficult to be “reasonable” towards these corporations.

eDicky

IATA speaks:

"Airlines cannot afford to refund cancelled tickets"

https://reut.rs/3e5cly0

nilanteh

I booked an anniversary trip for my family to Mauritius with Destination2. It’s a very expensive once in a lifetime trip which I did pay for on my credit card. I took out travel insurance when I booked but despite it being supposedly platinum level insurance it doesn’t cover cancellation even under fco advice. I realised this before the announcement and contacted Destination2 and they said if my holiday was cancelled for those reasons I would be given the options of rebooking or a full refund. However I am still waiting for them to contact me. I should be in Mauritius now ☹️  I’ve heard that they are not offering refunds just credit notes. But my husband has lost his job because of the current pandemic and we could really do with the refund that we are legally entitled to. I’m worried about taking a credit bite because the abta site seems to say they would give you atol protection until the end of July. But if they then don’t give me my refund and my atol protection is gone surely I lose everything. Do I have no choice but to accept this credit? What happens if I say no I only want the cash refund? 

Fed_Up

Why are TUI being allowed to get away with not refunding customers for cancelled holidays?  There is clear guidance on the rights of the customer, but these are being totally ignored by TUI!  We've all paid good money and are legally entitled to a refund, we want our money.  There needs to be Government intervention to ensure people get their money paid back in the specified 14 days.  Unfortunately ABTA are asking for refunds to be allowed to be paid over the next four months to 'help travel companies' - what about helping people who need their money back as they've lost their job and have no money coming in!

Fairypop

I've become a twitter warrior - something I never thought I would do! I just feel so strongly about this.  ABTA lobbying for changes to the law, using misleading language in their campaigns - stating the EU has changed the law, which is hasn't.  I am incensed.  Apparently Denmark has gone for the option of their gov't refunding holidaymakers by way of a loan to the tour operators that the operators pay back when they receive the airline refunds.  Join me on twitter!!  BEIS are the government department in charge of PTRs!

mr_stripey

Today I had an email from British Airways cancelling my flights in May to Dubrovnik. I had assumed they would be cancelled at some point. But now it seems getting a refund may not be straightforward?
I'm not in desperate need of the money, and a voucher would not be the end of the world, but a refund would be the prefered option!

mr_stripey

Westin said:

It would seem that the Transport Secretary, Grant Shapps is reportedly set to approve the use of credit instead of refunds.

The European Commission (EC)  has already relaxed regulations around customer claim refunds amid the corona covid-19 virus pandemic. 

Customers are being encouraged to accept credit notes as long as they can ask for a full refund at a later date – if it is not used towards a new booking.

The Independent reports  ABTA as saying that "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."

Also, according to The Independent, the Transport Secretary will agree to the same change in the UK, with any customer not redeeming their voucher able to claim the sum in cash. If a company were to fail before the credit note is cashed, financial protection will be provided by the Atol scheme.

Seems a very sensible move for all parties.

From my point of view, this seems fairly reasonable.
I would be happy to accept British Airways "voucher" offer for my cancelled flights, but if I was unable to used them in the allotted 12 month period, the option to get a refund at that point would be good!