Abta is being urged to rethink its position over refunds as the Right to Refund campaign steps up its lobbying on the issue.
VIVID Travel boss Kane Pirie has written to the travel association’s chief executive Mark Tanzer claiming direct dialogue with “senior members of the government” who support its side of the argument and are “aghast” at Abta’s position.
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The campaign has been rebranded from It’s Right to Refund to Right to Refund with “substantial financial backing” from several unnamed “leading travel industry entrepreneurs”.
An advertising campaign highlighting its position is planned, while legal and PR advisors have been taken on.
More than 18,500 consumers are backing the campaign against proposals to delay refund payments for up to 12 months.
Abta has been lobbying the government to relax a 14-day refund period to give travel firms hit by the coronavirus pandemic and resulting travel restrictions time to return the cash.
However, it issued a rebuttal of claims that expiry dates on Refund Credit Notes based on companies’ bonding periods meant that refunds due now could be withheld until as late as next March.
Pirie, founder of Right to Refund, advocates that a grace period be applied, but only for refunds due to customers who can afford to wait. A customer whose holiday is cancelled on May 1 should be refunded as normal by May 15, or no later than September 17 if they can afford to wait that long. September 17 would be six months after the government advised against all non-essential foreign travel on March 17.
Pirie, whose legal advisors have also written to transport secretary Grant Shapps, added: “This reduced delay in refunds under our proposals is of material benefit.
“Not everyone is rich. Even some people that were affluent are now reeling from lockdown fallout on their jobs, businesses and investments.
“This is why consumers, including customers of Abta members, are vociferous in their support of Right to Refund.
“Furthermore, we submit, the extra time your proposal affords travel companies is of no use.
“If a travel company cannot get itself financially on an even keel within six months, adding an extra year will not magically change that.
“Indeed, it will make the situation worse as several zombie travel companies will stagger on into Q1 2021, take several bookings and then fall insolvent when their loan notes to customers (Refund Credit Notes) become redeemable. This will drag out the nightmare into 2021.”
His letter to the Abta chief adds: “I appreciate you are determined to save your members from a flood of refunds they cannot cope with, but the solution cannot be a blaze of brands, businesses and trust which alienates the customers of your members. Aside from the legal and ethical considerations it is tantamount to commercial suicide.
“To conclude, I believe you have dropped your tanks too far from the beach [in the sea] and your position is indefensible.
“I invite you to reconsider, for the good of all stakeholders, and to move to our position which in contrast I believe is fair for all stakeholders.”
Pirie requested a response from Abta by tomorrow (Tuesday) and reiterated a threat to take legal action.
“I would emphasise there is still an opportunity to avoid an escalation in the conflict within the industry, for Abta to begin what will be a long process of rebuilding consumer trust and indeed to present to government a common position both travel companies and consumers, can accept,” he said in his letter.
“You are in a position of leadership with the ability to ease this crisis. I invite you to do so.”
