Coronavirus: Thwarted holidaymakers seeking £7bn in refunds
Consumer rights group Which? has said that it has received thousands of complaints from customers trying to secure refunds from the UK’s biggest travel companies and airlines.
New research from the group shows that many of the UK’s leading travel firms are breaching their legal obligations to pay refunds within the required timescale, instead offering vouchers to customers.
According to Which?, customers are seeking remuneration for up to £7bn in payments.
The claims leave many companies in the industry, which has seen its revenues decimated by the coronavirus shutdown, at risk of going out of business if they are forced to pay out.
Industry body the International Air Transport Association has lobbied global governments to allow airlines to issue vouchers instead of refunds in order to survive the current crisis.
Which? said that none of the ten UK airlines it had contacted were currently giving out refunds within the legal timeframe of seven days, with one refusing to process remuneration claims at all.
The same was true of the UK’s biggest travel firms, with some refusing to pay out holiday refunds at all and offering vouchers for future holidays as well.
Tourism body ABTA has said that many tour operators do not currently have the money to pay customers back within 14 days.
The association said that it had sought urgent guidance from the government as to ensure the rules for refunds are “fit for purpose in the current situation”.
Customers have also complained to Which? about the difficulties that they have had in contacting companies to claim their money back.
Airlines ‘abusing’ lifeline
Christian Nielsen, board member of the Association of Passenger Rights Advocates (APRA) comments on airlines’ undermining the legal rights of their customers:
“Customers who choose a travel voucher instead of a refund for a cancelled flight are, essentially, giving airlines financial credit and helping to provide a buffer in their time of need.
“In return, it will be reasonable to expect that their passenger rights will be at least respected. However, it appears some airlines are abusing this lifeline.
“They are undermining the legal rights of their customers by failing to inform them about their choices, essentially forcing them to accept the voucher instead.
“The crisis is, unfortunately, hitting airlines very hard, and we do understand the need for short-term measures that ease their burden but it cannot be at the expense of their customers.”
Which? editor Rory Boland said: “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.”