NEWS
Refunds furore ‘dents trust in travel sector’
Ian Taylor 21 price hike fears
price increases. Prices will be reasonably stable. Everyone, when they want to kick-start their businesses, will want to make offers. We will want to make it attractive.” Norwegian Cruise Line Holdings president and chief
executive Frank Del Rio also forecast: “Airfares will be lower than usual for the next six to 12 months.” Industry figures speaking on a Travel Weekly webcast last
week warned prices would have to rise to pay for the crisis. Alan Bowen, adviser to the Association of Atol Companies, suggested: “Somebody will have to pay for all this.” Speaking on a separate Travel Weekly webcast, Abta
chairman Alistair Rowland criticised some operators for raising prices for 2021 when consumers rebook a cancelled holiday. However, Abta chief executive Mark Tanzer said: “It’s
very difficult to predict what’s going to happen to prices over the next 18 months. If there is social distancing on flights, it will cost more. On the other hand, fuel prices might go down. If hotels have undercapacity, do they charge more? Or charge less to fill the rooms? You’d have
to be a fortune teller to predict prices in 2021.” i Business, page 30
F
rustration over refunds reached fresh heights as the government quashed apparent confirmation that it recognises refund credit notes are financially
protected and surveys suggested deepening consumer distrust of the industry. A Which? Travel survey published on
Wednesday (May 20) saw the consumer body suggest: “Trust has plunged to a record low as airlines and holiday companies deny and delay refunds.” A survey of 2,000-plus consumers found 22% trusted airlines and holiday firms but 34% did not, a reversal of findings in February when 32% trusted the sectors and 23% did not. Which? accused the government of taking “no
significant action” on refunds. It said the failure to confirm whether refund credit notes are protected added to the confusion. Consumer website MoneySavingExpert
published a list of the “50 best and worst travel firms for refunds”. It rated Ryanair the worst-performing major business, but Tui also rated poorly. At the other end, Travel Counsellors came top followed by Hays Travel, and Jet2holidays ranked well. Founder Martin Lewis said: “Many poor ratings
are about difficulties in getting in touch and terrible management of expectations.” But he added: “I’d encourage people who don’t need the cash to take vouchers.”
Michael O’Leary
The Department for Business (BEIS) retreated
on guidance that refund credit notes for cancelled holidays “will be financially protected” last week, amending this to say only that they “may be financially protected”. The change came after Travel Weekly revealed the apparent confirmation in a ‘Business Companion Coronavirus Bulletin’ on travel issued by BEIS and the Chartered Trading Standards Institute on May 7. However, the bulletin continues to advise
businesses to follow guidance on refund credit notes from Abta, which again wrote to the PM asking for government confirmation on Monday. The extent of the airline refunds backlog became
clear on Monday when Ryanair chief executive Michael O’Leary told customers: “You’ll have to be patient. We’re trying to process 25 to 30 million.” British Airways revealed on Friday that it had processed 920,000 refunds and 346,000 vouchers.
Adventures Await campaign O O O O
Ryanair cuts 250 office staff around Europe
Qatar Airways to cut 9,000 jobs, 25% of workforce
Welsh groups specialist On Tour Travel ceases trading
Lufthansa reinstates some UK and Ireland flights from June 1
Sunday, May 17 O
O
Disney protocols could see partial opening of Florida park
Monday, May 18 O
O
Abta writes to Boris Johnson with three ‘practical steps’ to save tens of thousands of jobs in the outbound travel sector
Dnata agrees partnership to run operater Etihad Holidays in the UK, and does not rule out trade sales
Tailor Made Travel says it will subsidise Covid-19 tests for all staff
O
Accor secures additional €560m banking credit facility
O
Reports suggest up to 30,000 jobs at risk at Emirates
Tuesday, May 19 O
HMRC says SMEs will be able to recover coronavirus Statutory Sick Pay from May 26.
O
EasyJet reveals a cyberattack has accessed details and emails
of about nine million customers O
IHG unveils ‘Clean Promise’ protocols for post-pandemic hotel stays from June 1
O O
Thailand’s government approves Thai Airways debt restructure
Silversea delays launches of Silver Moon and Silver Origin to August and July respectively
travelweekly.co.uk
21 MAY 2020
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PICTURES: Shutterstock
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