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‘Buy insurance to ease pain of cancellation fees’
Ben Ireland
ben.ireland@
travelweekly.co.uk
Abta has reasserted calls for consumers to purchase travel insurance at the point of sale to avoid losing money if they cancel a holiday.
It follows reports that travel
firms could be forced to abandon strict rules on non-refundable deposits following new guidelines by the Competitions and Markets
Authority (CMA). The Daily Telegraph accused Thomson Holidays, Viking
Cruises and Imagine Cruises of “heartlessly” refusing refunds when holidaymakers became too ill to travel or died. But this week Abta said
there was “nothing wrong with cancellation fees” charged by operators. A spokesman said: “Abta’s advice for many years has been for consumers to purchase travel insurance at the point of sale. “If they had travel insurance, cancellation fees would be irrelevant.” He said the Office of Fair Trading
– predecessor to the CMA – had previously ruled tour operators’
cancellation charges were justified. CMA research claims 54% of businesses “don’t fully understand” what makes terms and conditions unfair and highlights that some companies keep all of a customer’s deposit if they cancel, regardless of the cost to the business. However, a spokesman for CMA
stressed new guidance was “not a crackdown on the travel industry, or any sector in particular”. Thomson and Thomas Cook
charge a percentage of the full holiday cost, staggered by how early the cancellation is made.
Cook’s terms state that it takes either the set percentage, or the full deposit – whichever is higher. Thomson’s charges are “to
cover the cost of processing your cancellation, and to compensate us for the risk that we may not be able to resell” your holiday. A Tui spokesman added: “If
a customer needs to cancel or amend a holiday due to sickness or bereavement, we have a dedicated team to support them. Customers are advised on the importance of purchasing travel insurance to help in unforeseen circumstances.”
5 MP assures trade about EU air deal
Ian Taylor
ian.taylor@travelweekly.co.uk
A senior MP has assured corporate travel leaders they can expect “a decent outcome” to negotiations on air traffic rights with the EU as easyJet’s Carolyn McCall warned: “No one knows what will happen.”
Iain Stewart MP, parliamentary
private secretary to international trade secretary Liam Fox, told the GTMC conference in London: “The media summarises the options
as hard or soft Brexit, but the reality is very different. It’s in the interests of the rest of Europe to continue to trade openly with us.” Asked whether Britain would
retain open air access to the EU, Stewart said: “I’m confident there will be a commonsense arrangement.” He hailed the decision to build
a third Heathrow runway, saying it was “a signal of confidence”, adding: “We can’t let short-term inconvenience and fear trump long-term objectives.” Stewart noted: “The Gatwick
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travelweekly.co.uk 3 November 2016
“Everyone in Europe is looking for certainty and stability, and that is in our interests”
option was weaker because it’s the wrong side of London and the railway connecting Gatwick to the capital is one of the most-congested in the world.” EasyJet chief executive Carolyn
McCall said: “We’ve heard about Nissan and the car industry [being reassured on access to the EU],
but we haven’t heard anything about aviation and it’s incredibly important. At the moment we fly freely across 28 states. No one knows what will happen with that.” However, she said: “I’m optimistic. [Transport secretary] Chris Grayling understands the issues.” She added: “Everyone is talking about Brexit as though it’s just about Britain, and it’s not. Everyone in Europe is looking for certainty and stability, and that is in our interests. We have to put
this in perspective.” › Capa/ACTE Summit, page 70
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