AAC calls for change to refund rules Ian Taylor
The Association of Atol Companies (AAC) has called for an “urgent” rewrite of Package Travel Regulations (PTRs) rules on refunds in its response to a Department for Business and Trade Call for Evidence on reform. The Call for Evidence notes
organisers are liable for the performance of a package “irrespective of whether the travel services are performed by third parties”. But while Regulation 29 of the PTRs “provides an express right to seek redress from third parties . . . organisers can find it difficult to get redress [and] the requirement to provide refunds
within 14 days may not align with the time it takes to receive recompense.” The AAC notes the recent High
Court summary judgment against Ryanair and award of £2 million in refunds to On the Beach but points out: “The judge did not rely solely on [Regulation 29] to find against the airline.” It called on the government to
rewrite the regulation “as a matter of urgency”, insisting: “A clear statement of the right to recovery is needed.” The AAC welcomed a proposal
that “the [refunds] regime better caters for extreme extenuating circumstances” by “offering flexibility” over the maximum 14-day time limit on refunds. It notes this
Clia warns against heavy discounting amid capacity hikes
Josie Klein Clia Cruise Forum 2023, Windsor
The chair of Clia UK & Ireland has warned the cruise sector against heavy discounting in 2024 in the wake of big rises in Atol licences by the largest land-based operators. Speaking at the Clia Cruise
Forum, Ben Bouldin praised the performance of the cruise sector in 2023, saying it would be remembered for the industry’s “triumphant return” following the pandemic. Bouldin, who is also Royal
Caribbean vice-president for Europe, the Middle East and Africa, hailed the success of both the trade and
6 4 JANUARY 2024
cruise lines for fulfilling the “bold forecasts” Clia had made at the start of 2023, saying Covid was now “in the rear-view mirror”. However, he urged delegates to
“close the gap” between land-based and cruise holidays as land-based operators increase capacity for 2024. “We’ve seen some big land-based
operators extend their Atol provision for 2024, particularly Jet2, Tui and easyJet, which means they are all confident they’ll have a knockout 2024,” he said. “There will be more capacity
in land-based holidays than any year before and, coupled with the increase in cruise capacity, there are
The EU proposes
to allow the issue of refund credit notes as an alternative to cash and we endorse this
“would allow businesses to vary consumer expectations” but also points out: “Scheduled airlines are paid through BSP [Iata’s Billing and Settlement Plan] which in the UK operates fortnightly. [So] there need to be discussions with Iata.” The association also backed
a proposal to recognise use of refund credit notes in exceptional
circumstances, noting: “The EU is proposing to allow the issue of vouchers if the customer is prepared to accept them as an alternative to a cash refund within 14 days and we endorse this.” The AAC called for greater clarity
on the circumstances in which a customer can cancel a holiday and expect a full refund, pointing out: “Historically, the travel industry used FCDO [Foreign Office] advice as the determinant of when holidays should be cancelled. As currently drafted, the regulation is wider than that. We suggest much more clarity is given. It is vital to . . . determine exactly when
those circumstances have arisen.” i Business, page 54
Ben Bouldin
an awful lot of holidays to sell. “We need to close the gap in sales
between cruise and land and ensure that the inherent value of a cruise comes through. We don’t want a bloodbath on pricing [in] peaks.” Agents were also urged to secure
early bookings for popular 2024 and 2025 itineraries as global demand for cruising increases. Paul Melinis, APT managing
director for the UK & Europe, warned that demand for the line’s sailing this year would be different from 2023 because the Australian market was set to return in force. “In 2023, Australians weren’t travelling as much because of
increased airfares, meaning we had more inventory to sell to the UK market and we could drop prices,” he said. “But in 2024, there will be more
people travelling from Australia as they will have already booked cheaper flights, so we won’t have the same capacity for UK travellers. “Our message is to book early as
we don’t want to get into a price war.” Celestyal Cruises global chief
commercial officer Lee Haslett added: “You need to sell 2024 and 2025 sailings as early as possible [as] other markets typically sell slightly later, so this is your best chance to secure sailings for your customers.”
travelweekly.co.uk
PICTURE: Steve Dunlop
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