Agents plead for clarity on refunds


Juliet Dennis and Samantha Mayling


Agents have issued an urgent plea for more clarity and consistency from government and operators on refunds as consumers become increasingly frustrated and want their money back. Spear Travels managing


director Peter Cookson said operators not paying out refunds and the fact some replacement refund credit notes appeared not to be financially protected were the biggest problems facing agents. The agency is waiting for more than £500,000 in refunds from operators. He warned: “Customers are


becoming increasingly frustrated and want their money back, especially those who are self- employed and only paid their balance a few weeks ago and whose holidays had been cancelled. There should be a straight refund if they are not in a position to change the dates. “Some operators are sending out


emails implying refund credit notes are financially protected under Atol, but the CAA has not confirmed that, unlike Abta.” He added: “We want to come out the other side of this, but without


the confidence of our customers, we won’t. At present, all we have are some irate customers screaming for their money back. They all think we are holding on to their monies, which we are not.” Idle Travel director Tony Mann


said: “We are in the firing line; it’s an emotional rollercoaster.” His agency is now making clients aware of the refund issue as they pay balances in case their holiday is later cancelled. Three agents, one from the high


street, one homeworker and one online travel agency, made their plea for clearer information in a Travel Weekly video interview. Helen Furlong, a homeworker at


Midcounties Co-op’s Personal Travel Agents, said: “We need consistency of advice from operators.” Mark Swords, co-director of


Wimbledon-based Swords Travel, said: “All we want is some clarity, showing we are backed by Abta and the government, so we can say [to clients] ‘this is the process’.” Clients needed to know their


money was legally protected if they accepted a credit note, he added. Alex Tsirimiagos, head of revenue


management at online travel agency TravelUp, said: “We need the government to step in.”


Airlines’ provision of vouchers for cancelled flights rather than refunds could trigger credit card chargebacks to agents and operators


Fears grow of ch Ian Taylor


Concern at the impact of mass claims for refunds heightened this week with Abta accusing the government of “dragging its feet” and warnings that credit card chargebacks could “bring companies down”. There was still no deci-


sion from the Department for Business (BEIS) on suspending the Package Travel Regulations requirement to refund consumers for cancelled bookings within 14 days on Tuesday. This was despite Abta meeting


credit notes’ on Atol-protected bookings up to July 31. The association made a fresh


STORY TOP


appeal to ministers on Monday. It warned lack of action put businesses “on the brink”, threatening “catastrophic damage” to the sector and “widespread consumer detriment” as failures would lead to “lengthy delays” to


consumer refunds. Chief executive Mark Tanzer


yet again with the Department for Transport (DfT), BEIS and the CAA on March 26, having warned of “mass failures” and “an industry-wide collapse” if the 14-day rule is enforced. Travel Weekly has been told


Travel Weekly’s video interview with agents this week


4 2 APRIL 2020


the value of refunds owed since the government-imposed travel restrictions “is a colossal number”. Abta has partially taken the matter


into its own hands, advising members to delay refunds and issue ‘refund


pointed out France, Belgium, Denmark and Italy “have introduced changes to EU rules” and said businesses “simply don’t have the cash to provide refunds”. He said: “We’re proposing temporary changes to regulations to buy time for companies while ensuring customer rights are protected.” The association wants the 14-day


window extended to four months, confirmation that refund credits will be protected, an emergency consumer hardship fund to help pay refunds where suppliers won’t, and “strong enforcement” against airlines which refuse refunds.


travelweekly.co.uk


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