NEWS


Tourism minister Nigel Huddleston; left, Advantage’s new infographic


CMA reports high travel complaints


Lee Hayhurst


Criticism of some travel firms gathered pace this week as consumers backed campaigns calling for immediate refunds. The UK’s Competition and


ses refunds issue What does the


government need to make it act – a substantial failure?


position to do so because they don’t have people on the ground.” Huddleston said he was in talks


with both BEIS and the DfT, which he said were “working together” on a solution. He added: “It needs to be reasonable and sensible because there is this consumer and business dichotomy. We’re taking the issue very seriously. We’re looking at what other countries have done and taking advice from the industry sectors.” EU tourism ministers this week


agreed it was important to come up with a “harmonised solution” for refunding packages, including vouchers, and providing “temporary flexibility and liquidity” to ensure a fair balance of the interests of tour operators and consumers. The


travelweekly.co.uk


European Commission had already temporarily relaxed its position on the 14-day refund rule, which has been adopted across Europe. As the government ponders its


decision, agents face growing anger from customers. Travlaw senior counsel Stephen


Mason praised Abta for its “sensible approach” and said agents are facing “a huge argument” when they contact suppliers to make a request, as well as having to appease customers. “It’s an exhausting, drawn-out process,” he said. Mason’s Travlaw colleague,


associate solicitor Krystene Bousfield, highlighted the emotional impact on agents, and operators, struggling to refund. She said: “This is hitting people personally. They are upset. They want to serve their customers and are trying to do the right thing.” Advantage Travel Partnership


illustrated how agents found themselves stuck between customers and suppliers by releasing an infographic and reiterated that agents should not be liable for chargebacks.


The CMA reports a high volume of consumer complaints over holiday refunds


Markets Authority (CMA) picked out cancellation of travel and holidays as an area of particular concern in an update on Covid-19-related complaints. It said it had received


21,000 complaints between March 10 and April 19 and that as of last Friday four in five received involved cancellations and refunds. However, it was unclear how many related to the cancellation of holidays as opposed to other leisure activities such as concerts and events. The CMA said complaints


were “concentrated on a small number of large businesses” and focused on complex processes, high admin fees and pressure to accept credit notes. Campaigners took the CMA’s


update as evidence that consumer anger over some firms flouting airline and package travel refund rules was having an impact.


The issue was covered on


mainstream news channels and consumer publication Which? saw its #RefundPassengers hashtag trend on Twitter. Which? angled its campaign


against multinational travel firms as it stated “small holiday companies pay refunds”. VIVID Travel, whose founder


Kane Pirie had already launched the Right to Refund campaign, resigned its membership of Abta. The CMA said it would set out


steps in relation to cancellations this week. A spokesman stressed travel was just one sector being looked at in terms of unfair practices related to coronavirus. A senior industry source said:


“Abta does a lot of work with the CMA. There is recognition that this is not about [travel firms] trying to manipulate the rules or take an opportunity. It’s a crisis of liquidity. The CMA knows no one is trying to compromise the right to a refund.” In a Travel Weekly webcast,


Danny Rogers, editor-in-chief of public relations title PR Week, said the consumer view of the industry had “taken a turn for the worse”.


30 APRIL 2020


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PICTURES: Matt Sprake/Fameflynet.uk.com; Shutterstock


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