NEWS
Refund notes are protected – BEIS
Ian Taylor
The government has confirmed Refund Credit Notes are an acceptable alternative to cash refunds for cancelled holidays “and will be financially protected” despite making no formal announcement. The confirmation by the
ll halt recovery’ It beggars belief
there is no detail. Having an end date [to the quarantine period] is imperative
Two aspects have since been
confirmed. The 14-day isolation on entry is likely to start by the end of the month and will apply to arrivals by rail and sea as well as air. Dale Keller, chief executive of
the Board of Airline Representatives in the UK, said: “We support the government in looking to end the lockdown, but there is frustration at information being drip-fed. “It beggars belief there is no
detail. The number of people willing to fly will be minimal. “Having an end date is imperative.
That will determine the date the industry can look at restarting.” Alan Bowen, advisor to the
travelweekly.co.uk
Association of Atol Companies (AAC), said: “There will be no travel before September, so that is summer cancelled.” He warned: “Airlines are saying
they will start to fly from July. I suspect there will be a clash between them and passengers not wanting to go. I can’t see major tour operators forcing people to go on holiday. The people in trouble will be those who booked themselves.” Bowen added: “It will be very
difficult to justify collecting full balances for anything before the end of July while the 14-day rule is in force.” A senior industry source said:
“The industry does not want to be seen as in any way anti-health measures, but quarantine writes off travel. It will exacerbate the problem with refunds.” Accountancy firm MacIntyre
Hudson warned operators “could lose
up to £5 billion”. i Agents seek retail clarity, page 6 i Balance-due dates, page 7 i Business, back page
The bulletin issued jointly by BEIS and the CTSI
Department for Business (BEIS) appears in a ‘Business Companion Coronavirus Bulletin’ on travel, issued jointly by the department and the Chartered Trading Standards Institute (CTSI) on May 7. This acknowledges the
Package Travel Regulations “still apply” and says “a full refund or rebooking (if Abta or Atol- protected) should be offered”. But it notes “the strict application of legislation may not be appropriate” and states “a credit note will be financially protected”. It also notes Competition
and Markets Authority advice that “credits, rebooking or rescheduling may be offered as an alternative to a refund” although “a refund should still be an option that is clearly and easily available.
“Any restrictions that apply,
such as the period in which credits must be used, must be fair and made clear to consumers.” The bulletin carries the logos
of BEIS and the CTSI and advises businesses to follow Abta’s guidance. Abta has insisted Refund
Credit Notes issued in line with its guidelines will be financially protected and has been pressing BEIS to confirm this for weeks. The bulletin also acknowledges
“there is pressure from the travel sector to relax the current 14-day refund rule” and notes “conversations are ongoing” but suggests any change would require legislation “which could take time”. It advises travel firms: “Appeal
to customers for patience while you do everything you can . . . Deal with the most imminent travel plans first.” On the payment of balances,
the bulletin advises: “You should not seek payment for a service you know you’ll be unable to provide. “But where there’s a reasonable
expectation that travel plans will happen, customers should
continue to make payments.” i Balance-due dates, page 7
14 MAY 2020
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