SPECIAL REPORT Travel Weekly Insight Annual Report 2020-21: The ninth edition of the report was launched in tande


Travel firms face ‘big issue’ to pay refunds due for RCNs


T


he CAA decision not to allow refund credit notes (RCNs) to be issued for cancellations due to


Covid-19 beyond the end of the year risks a “serious outflow” of cash from struggling businesses. That is the view of industry


accountant Chris Photi, head of travel and leisure at White Hart Associates, who warned: “There could be a serious liquidity outflow if customers insist upon cashing in refund credit notes for a cash refund.” Photi told a Travel Weekly Insight


Report launch event: “Refund credit notes have undoubtedly been a lifeline for the industry, [but] they’re not an infinite resource. “The CAA says it won’t extend


[protection for] refund credit notes beyond December 31. That could be crucial to some businesses. The longer


There could be a serious liquidity outflow if customers insist upon cashing in refund credit notes


this goes on, the more bookings will fall due for cancellation and refund.” Alan Bowen, legal advisor to the


Association of Atol Companies, agreed: “It’s a big issue. I’ve talked to the CAA and there will be no extension. The CAA is being forced by the Treasury because, ultimately, if a business fails, refund credit notes are going to be paid out of the Air Travel Trust. And we all know the state of the Air Travel Trust. “The back-up insurance fund of £400 million is no longer there, so


Employment experts tip shift to more permanent homeworking


Every business will be examining workplace arrangements in light of the experience of working through lockdown. Ami Naru, partner and head


of employment at Travlaw, said employers would ask: “Do we need to get staff back into city centres and offices? Can we reduce those costs?” Speaking at the Travel Weekly


Insight Report launch, Naru said: “There are going to be a lot of discussions about where we work from. It’s going to be a mix of office and home-based work [in future].


10 17 DECEMBER 2020 “Employees may say, ‘I want to


carry on working from home. I’ve been working at home X number of months and can do so quite well’.” However, she said: “One


Ami Naru


it will be money coming out of the government’s pocket. “If travel doesn’t restart by April,


there will be an issue. People who have issued a lot of refund credit notes are going to be in some difficulty.” Bowen said: “An awful lot of


people assumed in March we would be out of this by the summer or at the very latest by early autumn. “There are an awful lot of


bookings for March-April [2021] where, if they can’t go ahead, customers will ask for refunds.” He added: “I came across a


company which issued credit notes that expire on December 31 and is writing to customers saying they’ve moved the date to September 30 next year. Of course, that isn’t acceptable. It’s an indication some companies are


finding life difficult.” i More Insight reports, pages 38-40


Travel Weekly Insight Report editor Ian Taylor


Chris Photi


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downside of working from home is there is no period when you switch off. You always have your phone with email. Employers need to be clear and explain ‘We want access between these hours’. There has to be a clear distinction even though you’re working from home.” Chris Photi, head of travel and


leisure at White Hart Associates, said: “We’ve seen clients negotiating to vacate premises and one or two looking to move to a virtual presence with everybody working from home. Some businesses will look to downsize premises, to encourage more homeworking. “You would be foolish not to


take the benefits that have come from the pandemic. It has shown we can operate [from home].”


travelweekly.co.uk


Ian Taylor


Lee Haslett


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