David Speakman (left) and Lee Hayhurst on a Travel Weekly webcast


Refunds crisis ‘shows trust account merits’


Lee Hayhurst T


he controversy over firms refusing cash refunds during the Covid-19 crisis is expected to see more companies use trusts to protect customer payments. The issue of refunds for cancelled flights and


holidays has put the spotlight on how many travel firms finance their businesses with money collected for trips not yet taken. While firms such as Trailfinders, On the Beach


and Travel Counsellors operate voluntary trusts, the coronavirus pandemic has seen growing calls to make them mandatory. Chris Photi, senior partner at White Hart


Associates, said more firms were seeing the advantages of trusts and regulators were likely to become more inclined to support their use. “There are some very successful businesses that


voluntarily use trust accounts and they have been trumpeting that loudly in recent days,” he said. “I can’t help feeling trust accounts are going to


ALSO IN THE PAST WEEK...


come more into focus. Regulators are going to view them as desirable, maybe not in the short term but certainly in the long term.” Travel Counsellors founder David Speakman


said it was a “disgrace” that travel firms were refusing to refund customers’ cash. He said if he were a customer he would refuse a credit note. “If you haven’t got the money, you’ve lost it,” he


said in a Travel Weekly webcast. “The answer to it is all customer money should


be in a trust. Remember, it’s not your money, so therefore you should be forced to [protect it].” Gary Lewis, chief executive of Travel Trust


Association parent The Travel Network Group, said trusts were “absolutely the right way” for financial protection in the future. But he said there needed to be independent safeguards, as last year’s failure of the Freedom and Future groups, which operated under a trust within Thomas Cook, showed. “The whole world of financial protection will be


open for debate at the end of this crisis,” he said. i Travel Weekly webcasts, page 10


Furlough hits A


Juliet Dennis


gents fear their jobs will get tougher in the coming weeks as large numbers of their supplier contacts are furloughed through the government’s Job Retention Scheme.


Operators have deactivated phone numbers and


emails for their trade sales and on-the-road teams and some have shut their travel agent Facebook pages to adhere to the rules of the government’s furlough scheme. Agents’ calls and enquiries are being diverted to


smaller teams working remotely to handle rebookings, credit notes and refunds. Paul Knapper, owner of Spires Travel, said: “We


have had eight to 10 emails from our tour operator area reps to say we will not be able to speak to the people we normally speak to. The Facebook pages for the trade have been shut down and all emails and numbers deactivated. “It’s going to be harder for us now. It seems crazy they


cannot work while being furloughed on 80% of their pay.” Niall Douglas, managing director of Full Circle Travel, warned communication between agents and


Wednesday, April 1 O


UNWTO publishes 23 recommendations calling for urgent support for the global tourism industry


O O


Viking pushes ahead with plans for new-build ship Viking Mississippi


Dubai’s crown prince pledges to financially support Emirates


Thursday, April 2 O


O


British Airways furloughs 36,000 staff


Saga warns all cruises and tours could be suspended for six months and launch of new ship Spirit of Discovery could be delayed O IAG axes shareholder dividends


O Iata reports steepest reduction in air travel demand since 9/11 O


Celebrity Cruises unveils new ship Apex in virtual naming ceremony


O Bosses at Royal Caribbean Cruises take six-month pay cuts


Friday, April 3 O


O O O


Heathrow shifts all flights to one of its two runways


Chancellor Rishi Sunak extends government loan scheme to larger companies


Travel Counsellors launches welfare fund for homeworkers


Accor says two-thirds of its 5,000 hotels to be temporarily closed


6


9 APRIL 2020


travelweekly.co.uk


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