Small Travel Business

operations1

Tedber said:

I have every sympathy for you but this is a site specifically for people who are trying to get their money back so I don't think you are in the right place to receive the answers to your questions.   There must be a section somewhere else more suitable. (I only ever come on here so not sure)  Am sure administrators will help you out.   Good luck by the way operations1.

Thanks for your sympathy but that's not what's needed it's a collective responsibility that needs to be adopted.

eskbanker

operations1 said:

43722 said:

This is a rant, a plaintiff cry. You will have the sympathy of all people, but people should be given their money back when any transaction cannot be completed, and where it is not the fault of the customer.

You write the words but the conviction and belief is not behind them. How is it right that my business goes bust because people are doing chargebacks? The answer is it's not right and this is not money owed it's a holiday owed as that's what they bought.

Unfortunately it's not a matter of 'right' or 'wrong' - it's simply that the law entitles customers to their money back where the supplier doesn't deliver, so it's unsurprising that many will wish to exercise those consumer rights, even though you consider that to be 'petty selfishness'.  You can complain that those laws and regulations are too heavily slanted to the consumer, and may have justification for saying so, but I don't recall reading any more about relaxation of those regulations that was hinted at ages ago in the MSE coronavirus travel article:

Currently, package holidaymakers whose trips are cancelled are entitled to all their money back within two weeks under the Package Travel Regulations.

Yet there are unconfirmed reports from travel expert Simon Calder that the Government might soon agree to changes to the Package Travel Regulations, which could mean companies will be able to issue credit notes instead of giving cash refunds. These credit notes, or vouchers, would enable the holidaymaker to book a new trip within two years. Any customer who does not redeem the voucher can then claim the sum in cash.

We asked the Government about this, and while it didn't confirm any details, it did suggest that an announcement may be made shortly. We'll update this guide as soon as we know more.

To be fair, MSE do also encourage people to think of the consequences of their actions ("Consider whether you 100% need a refund, or if you'd be happy with a voucher") and ("in theory you should get a refund, and it should arrive within two weeks, this is unlikely to happen in practice at the moment. It may be advisable to show forbearance and not push the law as far as it can technically go") but you only have to look at the vast majority of posts on this board to see how aggravating it is for customers to have to fight travel providers who are denying them their rights in a variety of ways, so it's a frustrating time all round....

Do you have any trade associations applying pressure to government and/or industry suppliers?

movilogo

If I were a customer I'd like my money refunded.
A lot of businesses would go bust - sad but reality. But there is always risk associated with businesses. 
My personal advise is to refund customers money. Seek grant/bridging loan etc. from govt or any other trading body if you can. 
Can you claim from any business insurance?

Life__Goes__On

The issue is the Gov/ CAA have never said that CRN are protected, the same with vouchers, so unless a cast iron guarantee then it's 100% need for a cash refund.

operations1

We really are all in it together aren't we. When a charge back is issued both the card processor and the bank charge a fee and the customer gets their money back so everyone wins

operations1

Also my business went into this with a very healthy bank balance and zero - yes zero - debt.  so if a company that has been run to the book for 30 years and had no debt cannot survive this what possibly can??

eskbanker

operations1 said:

We really are all in it together aren't we. When a charge back is issued both the card processor and the bank charge a fee and the customer gets their money back so everyone wins

I could be wrong but imagine that most people would be happier to receive refunds from the supplier within 14 days, but many are resorting to chargeback only when suspecting that they either won't get a refund from the travel company or that it'll take ages.

operations1 said:

Also my business went into this with a very healthy bank balance and zero - yes zero - debt.  so if a company that has been run to the book for 30 years and had no debt cannot survive this what possibly can??

I'm sure nobody wants to kick you when you're down but the business model doesn't seem particularly sustainable, despite having been going for 30 years - you clarified that you're not a travel agent but an actual operator selling direct to customers, but say that "All customers have been offered a voucher or a refund when we actually open".  I appreciate that it's difficult to keep a business operational throughout this crisis but conversely it's hardly surprising that your customers will be seeking meaningful information about their holiday bookings and what options are open to them.  Your bitterly sarcastic reference to all being in it together is perhaps understandable but as a longstanding customer-facing business you must be aware of the hugely variable nature of your customers, some of whom will of course be tolerant and understanding while others are much more entitled and legalistic (you'll probably have some more descriptive adjectives).

The situation you're in is unfortunately self-fulfilling, i.e. customers are less likely to accept vouchers if they perceive that the business is on shaky ground, but of course you'll see it as the business being on shaky ground because customers aren't accepting vouchers....

[Deleted User]

As I said originally operations1.  I really don't think this forum is the right one for you!   Am actually starting to wonder if you just want an argument?   You aren't actually coming over in a good light as a business owner.   People on here are looking at recouping their losses.

operations1

I suppose that I am just struggling to accept that this is the end of events, hospitality and tourism industries. 

Alan_Bowen

Operations1 , I think you need to calm down. This is a forum for consumers, not tour operators and with respect, you cannot expect much sympathy from those who have been told to wait a year for a refund or worse still, heard nothing at all from their company.
It sounds as though you need to be putting pressure on your suppliers to refund you, I appreciate that may not be easy but as others have said, the law is the law. Have you taken professional advice from your accountant or bank manager to discuss the options that might be open to you? The problem is that customers will only wait a reasonable length of time until they assume they are not going to get a reply and that is when chargebacks appear, in reality around 65-70% of existing customers have accepted Refund Credit Notes or rebooked for 2021 and are not asking for refunds but if no one is answering the phones, what other choice do they have?