CAA urges travel firms to offer cash refunds for ‘unavoidable’ cancellations

Travel firms have been reminded that they should offer cash refunds to consumers in the event of cancellation due to “unavoidable and extraordinary” circumstances as the Iran war entered its sixth week.

 

The advisory from the Civil Aviation Authority came as the spring round of Atol renewals was published.

 

Of the 702 ATOL licences that expired at the end of March, 636 have been renewed, with a further 26 still in the application process or yet to meet licence conditions, according to the regulator.

 

A total of 1,674 businesses in the travel sector are licensed under the Atol scheme according to new figures released by the CAA.

 

Jet2holidays, Tui, loveholidays, easyJet holidays and On the Beach make up the current top five licence holders following completion of the March Atol renewal process. 

 

The figures for the top two match the September renewal figures, with Jet2holidays at just over seven million passengers (7,043,718) and Tui second with a licence for just under six million (5,942,801). EasyJet holidays remains in fourth place with an Atol also static at 3,455,570.

 

However, OTA loveholidays has seen its licence rise to more than 5.5 million from 5,011,286. Rival OTA On the Beach has seen its number increase to more than 2.5 million from 2,360,597in September.   

 

British Airways Holidays is in sixth place (1,178,956), followed by Booking.com (1,114,151), with their Atols unchanged from six months earlier.

 

Lastminute.com parent BravoNext is in seventh place with an Atol for 732,024 passengers, while Tui in-house line Marella Cruises is licenced for 423,657 passengers and Expedia for 421,563.    

 

CAA Atol spokesperson Geoff Wingfield said: “The continued demand for Atol protected holidays shows that consumers place real importance on having confidence and clarity when they book their trips.

 

“We recognise the challenges that travel companies are facing with the evolving situation in the Middle East. 

 

“It is important that passengers’ holidays are protected, and we will continue to work with industry to ensure they understand how best to support their customers.”

 

The Foreign, Commonwealth, and Development Office (FCDO) is continuing to advise against all but essential travel to the Middle East.  

 

Under the Package Travel and Linked Travel Arrangements Regulations 2018, consumers have the right to terminate the package without paying a fee in the event of unavoidable and extraordinary circumstances. 

 

If the consumer or package organiser terminates the trip, then the provider must issue a full refund within 14 days, the regulator noted.

 

The CAA said: “If offering vouchers to affected consumers in lieu of a cash refund, package organisers should tell consumers that they are entitled to a cash refund and are not obliged to accept the voucher. 

 

“Organisers should also tell consumers that the voucher is not Atol protected if it is not applied to an Atol protected holiday.”

 

Loveholidays chief executive Donat Retif said the business “continues to go from strength to strength” as consumers respond to the choice, value and ease on offer, “and our latest Atol update clearly reflects this momentum”.

He added: “With a licence to take five and a half million UK passengers on holiday over the course of the next year, we are further strengthening our position as a leader in package travel.

“This growth demonstrates that our continued focus on expanding our product, scaling our technology and enhancing our customer experience is paying off.

 

“Most importantly, it reflects the continued trust that our customers place in us to deliver holidays they love – a responsibility that motivates us to keep raising the bar in the travel industry every day.”

 

The CAA also continues to ask travel businesses that they should apply to renew their Atol “well in advance” of the deadline because of the time required to analyse and process applications, and for the applicant to put any required conditions in place.

 

“Businesses that fail to allow reasonable time to apply by the deadline risk being unable to take Atol protected bookings,” the regulator added.