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UK travel companies struggle with refunds

 

World-wide, the travel industry is struggling with the issue of refunds for canceled travel; customers want their money back, but companies, with few new bookings coming in, are struggling to pay, or to find ways to hold on to the money for now.

Cruise lines have had some success in offering bonuses with future credits, and next-year bookings for 2021 are picking up. Some airlines have followed the same plan; others, including in Canada, have gotten permission to give credits instead. 

But the segment of the market that has perhaps been hammered worst in the UK are the companies that sell package holidays; under British law they are required to refund within 14 days when they cancel a trip, a practice that is easily followed in routine times, but not when there are mass cancelations.

The agencies say they are caught in the middle, with the money already having been paid to air carriers, hotels and other providers, many of whom are also not in a position to make refunds to the packager.

Abta, the association that represents the packagers has asked for extended deadlines, but some of the companies involved are not so sure it's a good idea.

Kane Pirie, founder of Vivid Travel, told The Independent he's afraid that if people whose vacations were canceled and who need the money now during the crisis don't get it, when the crisis is over travel agents will be in bad repute. 

“I don’t want the travel industry to be the next ‘bankers after the bail-out,’ where people don’t respect and trust us. We have to be serious businesspeople in a time of crisis – not panicking and saying, ‘Let’s change the law’.”

The best part of every trip is realizing that it has upset your expectations

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