‘Investors must pay for client refunds’


Travel Weekly reporters


Private equity investors have been urged to “put their hands in their pockets” to issue customer refunds, with a warning that unnecessary delays will cause irreparable damage to customer trust in the industry. Speaking in a Travel Weekly


webcast, ATD Travel Services founder Oliver Brendon said leeway should be given to allow firms to process refunds in unprecedented circumstances and with reduced workforces but argued that should extend no further than September. He also insisted that private equity-


backed travel companies and large multinationals had not exhausted all means to raise funds to return money owed to customers and could abuse extensions to the regulatory window. Brendon believes Abta’s decision


to link expiry dates on Refund Credit Notes (RCNs) to bonding periods stretching to March 2021 gave firms the green light to delay repayments. However, the association insisted


it had been clear that members must pay refunds “without undue delay” when requested, and its guidance did


not mean that refunds due now could be withheld until that date. It said: “Abta makes absolutely


clear that companies should pay customers as soon as they are able to, regardless of the expiry date on a refund credit. It would make much more sense for customer and industry confidence for the government to outline a clear plan.” Referring to its code of conduct


and guidance on RCNs, it added: “If they [a member] have an end date of March 31, 2021, on their RCN, that is the last date by which all refunds must have been paid. It is not the date at which refunds will be paid.” Abta also said it could revoke the


membership of operators that refused to refund customers. Speaking on the same webcast as


Brendon, Jo Rzymowska, Celebrity Cruises’ vice-president for the EMEA region, said she had sympathy for Abta in trying to find a balance between supporting the customer and keeping members in business. She added: “What we’ve got to


be careful about is that the consumer could be in a worse position if the


[travel company] isn’t there.” i T


ravel Weekly webcasts, page 10 Minister address Ben Ireland


The tourism minister has insisted the government remains supportive of the travel industry, but said delays to action were due to its wish to meet the needs of both consumers and businesses. Nigel Huddleston was the first


person in government to publicly address the issue of refunds when he said MPs had been “inundated” with correspondence from both sides of the “sensitive” debate on Tuesday. But he was unable to give a


STORY TOP


timeline for a decision. Abta has lobbied the government


Oliver Brendon 4 30 APRIL 2020


and warned that customers chasing refunds would be likely to have to wait longer to get their money as some companies could be put out of business if forced to refund in line with the 14-day rule in the Package Travel Regulations (PTRs). The Department for Transport (DfT) is understood to be close to


signing off Abta-endorsed Refund Credit Notes (RCNs) – which would mean they retain Atol protection against insolvency – but the Department for Business (BEIS), which oversees the PTRs, is understood to be concerned about appearing anti-consumer. A senior industry source said clarification “remains close”, adding: “It’s deeply frustrating. What does the government need to make it act – a substantial failure?” Speaking in a UKinbound


webinar, Huddleston said:


“This is absolutely a hot topic. MPs are getting inundated from both sides in terms of businesses writing to us saying they’re struggling and consumers saying they want their money back straight away. “We need to find a way so this


issue is not seen as consumers on the one hand and businesses on the other at loggerheads. I know companies are struggling to process these refunds even if they’re in a [financial]


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