TRAVEL firms including TUI, Ryanair and British Airways are breaking the law by failing to issue refunds for cancelled holidays within the set time-frame, according to a leading consumer group.
Consumer law states that airlines and travel package providers must give customers’ their money back if the firm cancels their trip.
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If your holiday is cancelled by your tour operator, the money has to be refunded within 14 days, or seven days if the airline called off your flights.
Millions of holidays have been called off due to travel restrictions put in place by governments all over the world to stop the spread of the deadly coronavirus.
But thousands of customers are complaining that the travel providers they booked their trips with are refusing to play by the book.
Instead, some have offered passengers vouchers or credit notes that they can use to book a holiday in the future, but these could prove worthless if the firm goes bust.
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Up to £7billion worth of payments made by UK customers are believed to be affected by the cancellations, leaving many firms struggle to meet refund deadlines.
The Package Travel Regulations state that firms should return customers’ funds if holidays are cancelled by the tour operator but confusingly, ABTA (Association of British Travel Agents) is advising operators to offer a “refund credit note” instead.
The consumer group asked 10 of the UK’s biggest holiday companies, including TUI and Jet2, and 10 of the largest airlines, such as easyJet and British Airways, what their current refund policy is.
It found that none of them are currently offering customers their money back within the legal timeframe, while others are refusing to provide refunds altogether.
Love Holidays has come under fire for telling customers they would only be able to accept voucher credit for cancelled holidays and TUI has also been criticised for not proactively offering refunds, although it has since updated its policy.
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Ryanair was initially praised for its decision to refund customers, but passengers have since complained that it is offering a voucher valid for 12 months instead.
Meanwhile, British Airways has been slammed for telling customers to call a phone line that’s is struggling with the demand, rather than asking them to complete an online form.
Some smaller firms have been praised for treating customers fairly and within the law, including Trailfinders, Kuoni and Responsible Travel.
Which? is now urging the government to step in and work with regulators to make sure that holidaymakers are not left out of pocket during the pandemic, particularly when household finances are being hit hard by the lockdown.
Travel editor at Which?, Rory Boland said: “We do not want to see the industry suffer further as a result of this outbreak, but it cannot be on consumers to prop up airlines and travel firms, especially when so many will be in difficult financial situations of their own.
‘I’ve been waiting a month for my £4,300 refund’
HARRY Moor (pictured) had booked a dream two-week getaway to St Lucia with his wife earlier this year, which was due to go ahead on March 16.
The 74-year-old retiree told The Sun that his trip was unsurprisingly cancelled eight days before it was due to go ahead because of the coronavirus crisis, but over a month later and he says he’s still waiting on a £4,293 refund for the all-inclusive trip.
“I’m fortunate that I get a regular pension from my old job in insurance, so my monthly income hasn’t been affected by the epidemic and my wife is able to continue working in her role for the NHS,” Harry told The Sun.
“But I really feel for the self-employed and others whose income has been affected and who now can’t afford to wait on these refunds. “TUI is just sitting on our money. Knowing that it takes them seconds to process a payment I would think that a refund would take a similar time.
“I’ve been on hold for hours and I’m still no closer to knowing when I’ll be refunded.”
“The government must urgently set out how it will support travel firms and airlines to ensure they can meet their legal obligations to refund customers for cancelled travel plans – and avoid permanent damage to trust and confidence in the travel industry.”
TUI UK and Jet2Holidays said they are contacting customers who have been affected by the cancellations but accept that due to demand, there it is experiencing delays.
British Airways, Travel Republic, Virgin Holidays, Virgin Atlantic, British Airways, Emirates, Qantas and Etihad is urging customers to contact them to discuss their options, but warns to expect delays due to the current circumstances.
easyJet Holidays said it’s taking on average 13.4 days to process refunds and thanks customers for their patience.
On the Beach said that it is “urgently working to clarify” when it will be able to refund customers for their flights, while Love Holidays said that it was keeping its policy constantly under review.
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BravoNext SA/Lastminute added that it was working as the “sole intermediary” and is following the cancellation policy of the airline.
Air France-KLM said that its refundable voucher policy “constitutes a fair solution and a reasonable balance between the protection of their passengers and the operational realities that every airline has to face.”
Expedia Group and Ryanair did not respond for comment.
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