Travel firms are cancelling holidays due to coronavirus but refusing to issue cash refunds

Hundreds of holidaymakers whose trips have been cancelled because of the coronavirus crisis have told The Independent they have been refused cash refunds. 

When the Foreign Office (FCO) warned against any travel abroad until 16 April, anyone with a package holiday became entitled to a full cash refund under the Package Travel Regulations. 

The travel firm can offer either an alternative departure or a credit note. But it is the customer’s choice: if they ask for their money back, it must be provided within two weeks.

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But in the unprecedented travel crisis, many firms – large and small – appear to be failing to provide a full picture of options.

Graham Berry, who had a booking with Virgin Holidays for departure on 2 April, requested a refund after the trip was cancelled.

But he was told,: “Should you just wish for the holiday to be cancelled we can do this for you and send a cancellation notification and you would need to seek the cost of the holiday back through your travel insurance company.”

Any travel insurer would immediately reject such a claim, as it is the tour operator’s responsibility to provide a refund.

Mr Berry was told: “We are following the advice from the FCO along with all other travel providers as you can appreciate all of our suppliers have also required payment.”

However, this interaction went against Virgin Holidays’ policy.

A spokesperson for the travel company said: “Virgin Holidays acknowledges that all customers are entitled to a refund and our teams can help with this.

“We are updating our information on our website to make sure this is incredibly clear, and we will also ensure that our customer teams are also advised and fully trained on the changing policies we have put in place, to deal with the continuing travel restrictions that we’re faced with.”

Top: Nabi Younes market, Mosul

Bottom: Charles Bridge, Prague

Grand Mosque, Mecca

2/20 Grand Mosque, Mecca

Sagrada Familia, Barcelona

3/20 Sagrada Familia, Barcelona

Nabi Younes market, Mosul

4/20 Nabi Younes market, Mosul

Basra Grand Mosque, Iraq

5/20 Basra Grand Mosque, Iraq

Charles Bridge, Prague

6/20 Charles Bridge, Prague

Taj Mahal hotel, India

7/20 Taj Mahal hotel, India

Dubai Mall, UAE

8/20 Dubai Mall, UAE

Beirut March, Lebanon

9/20 Beirut March, Lebanon

Gateway of India, Mumbai

10/20 Gateway of India, Mumbai

Cairo University, Egypt

11/20 Cairo University, Egypt

Amman Citadel, Jordan

12/20 Amman Citadel, Jordan

Church of the Nativity, Bethlehem

13/20 Church of the Nativity, Bethlehem

Beirut March, Lebanon

14/20 Beirut March, Lebanon

Cairo, Egypt

15/20 Cairo, Egypt

Cairo University, Egypt

16/20 Cairo University, Egypt

Victoria Memorial, India

17/20 Victoria Memorial, India

Amman Citadel, Jordan

18/20 Amman Citadel, Jordan

Amman Citadel, Jordan

19/20 Amman Citadel, Jordan

Sidon, Lebanon

20/20 Sidon, Lebanon

1/20

Top: Nabi Younes market, Mosul

Bottom: Charles Bridge, Prague

Grand Mosque, Mecca

2/20 Grand Mosque, Mecca

Sagrada Familia, Barcelona

3/20 Sagrada Familia, Barcelona

Nabi Younes market, Mosul

4/20 Nabi Younes market, Mosul

Basra Grand Mosque, Iraq

5/20 Basra Grand Mosque, Iraq

Charles Bridge, Prague

6/20 Charles Bridge, Prague

Taj Mahal hotel, India

7/20 Taj Mahal hotel, India

Dubai Mall, UAE

8/20 Dubai Mall, UAE

Beirut March, Lebanon

9/20 Beirut March, Lebanon

Gateway of India, Mumbai

10/20 Gateway of India, Mumbai

Cairo University, Egypt

11/20 Cairo University, Egypt

Amman Citadel, Jordan

12/20 Amman Citadel, Jordan

Church of the Nativity, Bethlehem

13/20 Church of the Nativity, Bethlehem

Beirut March, Lebanon

14/20 Beirut March, Lebanon

Cairo, Egypt

15/20 Cairo, Egypt

Cairo University, Egypt

16/20 Cairo University, Egypt

Victoria Memorial, India

17/20 Victoria Memorial, India

Amman Citadel, Jordan

18/20 Amman Citadel, Jordan

Amman Citadel, Jordan

19/20 Amman Citadel, Jordan

Sidon, Lebanon

20/20 Sidon, Lebanon

But other operators are continuing to insist they do not need to issue refunds.

Jenny Campbell, who had booked through Newmarket Holidays to visit Italy in April, was told: “Abta guidelines have changed and customers are not being given refunds but instead are able to move all their money to another date with a further percentage on top of that or can have a credit note.”

The Independent has confirmed with Abta that its guidelines have not changed and has sought a response from Newmarket Holidays.

Abta, the travel association, is asking for support from the travelling public, saying: “If possible, postpone your holiday or travel arrangements, don’t cancel – this will mean you have a holiday to look forward to in the future, and it will help your travel provider maintain its cash flow through the short-term challenges. 

“If you are not able to postpone, they may offer you a refund credit voucher instead of a cash refund. Abta is in urgent talks with the government to ensure that these credit arrangements have the full cover of financial protection.

“If you have a travel booking for later in the year, please be patient. The situation is changing rapidly, and travel restrictions are currently only in place until mid-April.  You may incur cancellation charges or lose your deposit if you make a hasty decision.

“Nobody knows for sure how long the current coronavirus pandemic will last, but we know that we will come out of the other side and we need to ensure that when we do, holidaymakers are still able to book and take their holidays and that there is healthy and competitive travel industry to support them.”

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