Difference between travel credit and travel voucher

telecomtails

I booked the flights for a four person trip to Brazil through Last Minute.  The total cost was just under £4000. Naturally these are all now cancelled by the two airlines concerned - Virgin who have postponed commencing their new Brazil route, and Gol who were providing the internal flight.  I have now had written offer from Last Minute offering three refund options.  A travel credit for about £300 more than I paid originally, a travel voucher for the same amount paid originally, or a refund via the airlines which they say will attract handling charges, and will likely total about £90 less than the original purchase.  They also say the refund will be in a form of the airline’s choosing that Last Minute have no control over - so could be cash back onto my card, or could be airline voucher/credit.  

It is really unclear from the T&C’s what the difference is between the LM travel credit and travel voucher. Both are valid 12 months, both could be used multiple times until value consumed or time expired, and both can be used for Summer 2021 bookings. They are pushing you towards the Travel Credit and even offering what is described as a ‘cash’ refund if you have not used the credit in the first six months... though no refund of unused funds if you have used the credit at all.  I feel there must be a ‘catch’ in the Travel Credit offer but cannot spot it.

i would swallow the £90 and take the airline refund if that was guaranteed as cash back, but I doubt it will be and with doubts over the future of some airlines as businesses, that seems a risky route.

Anyone got any thoughts?

Nebulous2

I'm still awaiting a response from lastminute. I intend to.pursue cash. My flight was with Singapore Airlines who do give a cash option. 

My concern about any of the vouchers is that you are tied to that company and won't be able to shop around. There are stories on here of people seeing flights going to book using their credit and being offered a higher price. 

We've been told that our contract is with the travel agent and we need to go through them, which I accepted - however this Which article says you can go direct to the airline. 

https://www.which.co.uk/news/2020/05/airlines-pass-the-buck-to-travel-agents-to-avoid-paying-refunds/

Browntoa

The travel credit is an additional sweetener voucher to entice you to rebook with lastminute

Butts

Browntoa said:

The travel credit is an additional sweetener voucher to entice you to rebook with lastminute

But before you do remember your personal experience and those of others on Trust Pilot !!!

Life__Goes__On

telecomtails said:

I booked the flights for a four person trip to Brazil through Last Minute.  The total cost was just under £4000. Naturally these are all now cancelled by the two airlines concerned - Virgin who have postponed commencing their new Brazil route, and Gol who were providing the internal flight.  I have now had written offer from Last Minute offering three refund options.  A travel credit for about £300 more than I paid originally, a travel voucher for the same amount paid originally, or a refund via the airlines which they say will attract handling charges, and will likely total about £90 less than the original purchase.  They also say the refund will be in a form of the airline’s choosing that Last Minute have no control over - so could be cash back onto my card, or could be airline voucher/credit.  

It is really unclear from the T&C’s what the difference is between the LM travel credit and travel voucher. Both are valid 12 months, both could be used multiple times until value consumed or time expired, and both can be used for Summer 2021 bookings. They are pushing you towards the Travel Credit and even offering what is described as a ‘cash’ refund if you have not used the credit in the first six months... though no refund of unused funds if you have used the credit at all.  I feel there must be a ‘catch’ in the Travel Credit offer but cannot spot it.

i would swallow the £90 and take the airline refund if that was guaranteed as cash back, but I doubt it will be and with doubts over the future of some airlines as businesses, that seems a risky route.

Anyone got any thoughts?

Is the payment to LM  (how the transaction appears)?

telecomtails

Browntoa said:

The travel credit is an additional sweetener voucher to entice you to rebook with lastminute

Both the voucher and the credit appear to apply only to Last Minute.  It does not say the voucher can be used anywhere else. 

telecomtails

I think I will have to try to speak with them because although I paid for the flights, none of the bookings were in my name.  I was paying for flights to bring my daughter and her family across to the UK for the from Brazil where they live.  I need to be sure that any travel credit/voucher can be used by me for myself or for any other person I choose.

telecomtails

Life__Goes__On said:

telecomtails said:

I booked the flights for a four person trip to Brazil through Last Minute.  The total cost was just under £4000. Naturally these are all now cancelled by the two airlines concerned - Virgin who have postponed commencing their new Brazil route, and Gol who were providing the internal flight.  I have now had written offer from Last Minute offering three refund options.  A travel credit for about £300 more than I paid originally, a travel voucher for the same amount paid originally, or a refund via the airlines which they say will attract handling charges, and will likely total about £90 less than the original purchase.  They also say the refund will be in a form of the airline’s choosing that Last Minute have no control over - so could be cash back onto my card, or could be airline voucher/credit.  

It is really unclear from the T&C’s what the difference is between the LM travel credit and travel voucher. Both are valid 12 months, both could be used multiple times until value consumed or time expired, and both can be used for Summer 2021 bookings. They are pushing you towards the Travel Credit and even offering what is described as a ‘cash’ refund if you have not used the credit in the first six months... though no refund of unused funds if you have used the credit at all.  I feel there must be a ‘catch’ in the Travel Credit offer but cannot spot it.

i would swallow the £90 and take the airline refund if that was guaranteed as cash back, but I doubt it will be and with doubts over the future of some airlines as businesses, that seems a risky route.

Anyone got any thoughts?

Is the payment to LM  (how the transaction appears)?

I booked and paid the full amount directly to LM back in January.

Life__Goes__On

You are entitled to a cash refund form LM, the talk of vouchers is smoke and mirrors,  they legally have to refund you in cash.
LM can take a admin fee as long as it's in their contract and the fee is fair.

telecomtails

Life__Goes__On said:

You are entitled to a cash refund form LM, the talk of vouchers is smoke and mirrors,  they legally have to refund you in cash.
LM can take a admin fee as long as it's in their contract and the fee is fair.

Not sure about that... the T&Cs of LM flight only booking state...

”4.4. BOOKING CANCELLATION OR MODIFICATION BY THE AIRLINE OR FLIGHT PROVIDER

In case the airline or flight provider cancels or modifies the flight you have booked (for example, they change the schedule), you have the right to a refund of the price of your plane ticket and/or some other type of economic compensation in accordance with European Commission Regulation no. 261/2004. For more information on your rights, you can consult (there was an EU link here but MSE wont let me include it). 

We inform you that the application of a refund or economic compensation is the exclusive responsibility of the airline and that the Company is not responsible for such under any circumstance.

In these cases, the Company will assist you in getting the amount of your plane ticket back (not any subsequent compensation, which you would have to directly ask of the airline) by acting in your name and on your behalf with the airline.”

——

That looks like option 3 in the refund offers I have received, but as LM point out many airlines are currently offering vouchers not cash.  I have no interest in Gol or Virgin vouchers and suspect a long wait/ battle for cash... during which time anything could happen to the finances of those airlines.

It is interesting that LM travel credit includes option to transfer to cash if credit not used in six months... gives no further info on that at this stage. I suspect the terms for that would be provided at next stage of process - ie: after selecting that option. After which you have 24 hours to change your mind.

Life__Goes__On

Your contract with with LM  that who refunds you.
The airline refunds LM
Although there is a chain,  just because the airline might break the chain to LM, doesn't give  the right for LM to break the chain to you.