government’s traffic light system and FCDO advice. Ian Taylor reports on virtual Abta event BUSINESS NEWS
‘Organisers must assist customers stranded overseas’
Travel organisers are required to assist customers stranded overseas due to Covid-19 and may be liable for additional accommodation costs. Claire Mulligan, partner at law
firm Kennedys, confirmed tour operators and agents acting as travel organisers “have a responsibility to look after people overseas”. She noted the extent of liability
for costs due to “unavoidable or extraordinary circumstances” under the Package Travel Regulations was confirmed following the Icelandic ash cloud of 2010. Mulligan told the Abta Travel
Law Seminar: “If you’re unable to get people home because of unavoidable
Claire Mulligan
‘Advise your clients to purchase comprehensive travel insurance’
circumstances you have to pay ‘reasonable’ costs of accommodation for no more than three nights. You’re not forced to pay for three nights if they could get back sooner. [But] you have a duty to help people get back – the assistance point is critical.” Mulligan cited a recent court
ruling which saw £10,000 plus costs awarded against a travel organiser which took a £3,500 family booking to Abu Dhabi then arranged the wrong visas and failed to note a child did not have the required six months’ validity on their passport.
Agents should be advising clients to take out comprehensive travel insurance, check what is covered and avoid low-priced policies. That is according to Alex Padfield,
director at Hexstalls Law, who said: “Insurance policies are not always clear, [but] customers need to look in detail at the cover.” Padfield identified three types of
insurance currently on the market: low-priced standard policies which exclude Covid cover, policies covering Covid-19 medical expenses “but not much else”, and “wider-ranging cover but with a large degree of variation”. He noted: “Almost all policies
cover for a positive Covid-19 diagnosis pre-departure. Some cover if NHS Test
and Trace notify you to self-isolate. Some cover denied boarding. Some cover if a GP says ‘don’t travel’. And some cover if you can’t have a second vaccine dose due to illness or allergy. “Most will cover if FCDO advice
changes. Policies don’t yet refer to red, amber or green. [But] we have to see what happens. Most policies cover medical expenses and repatriation. Some will cover if there is lockdown in a country or the border closes.” But he said: “If a customer
is disinclined to travel, policies won’t cover them. If quarantine is introduced on their return to the UK, there is no cover anywhere for that. If you travel against FCDO advice, most policies won’t cover anything.”
‘Obligation on agents to advise’
Companies need to provide comprehensive advice to customers on everything from a country’s traffic light category, Foreign Office advice and requirements for returning to the UK, to the health requirements and restrictions in destinations. Themis Advisory director Jo
Kolatsis said travel advisors should check: “Is a reason needed to travel or to enter the destination? Is there a testing requirement? Is there testing on arrival? Is there a requirement to quarantine? Are there restrictions in place in the destination or restrictions on services?” She told Abta’s Travel Law
Seminar: “It’s the responsibility of the traveller to be aware of the requirements, but there is an obligation on the agent or travel organiser to provide the information.”
travelweekly.co.uk If restrictions are
in place, can the trip proceed as planned? You would need to look at that case by case
Kolatsis added: “Things can change
after they book so include [information on] cancellation and amendment rights. If the traveller can’t enter the destination, they should expect a full refund. If there is a requirement to quarantine in the destination, that would trigger a full refund. “If restrictions are in place, can
the trip proceed as planned? You would need to look at that case by case. A requirement to wear face masks would not be significant, but an evening curfew could be.”
She argued: “You should advise
customers to have travel insurance that covers Covid-related issues. If a traveller contracts Covid-19 in the destination, that is insurable. There is an obligation to provide support in resort, but the traveller should have insurance. Customers need to make sure they have the right cover.” Having to quarantine in the UK
upon return “would have no bearing on delivery of the package so would not trigger a refund”, she said. Kolatsis advised: “Communication
and transparency will be key. Be flexible where you can [and] be aware the Competition and Markets Authority is taking an active interest in the sector.” Asked what information should be
given to clients making bookings for next year, Kolatsis said: “Who knows what will happen then. You have to give the information as it stands.”
27 MAY 2021 Jo Kolatsis 47
PICTURE: Karla Gowlett
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