The Association of Atol Companies (AAC) has called for an “urgent” rewrite of Package Travel Regulations (PTRs) rules on refunds in its response to a Department for Business and Trade Call for Evidence on reform.
The Call for Evidence notes organisers are liable for the performance of a package “irrespective of whether the travel services are performed by third parties”. But while Regulation 29 of the PTRs “provides an express right to seek redress from third parties . . . organisers can find it difficult to get redress [and] the requirement to provide refunds within 14 days may not align with the time it takes to receive recompense.”
The AAC notes the recent High Court summary judgment against Ryanair and award of £2 million in refunds to On the Beach but points out: “The judge did not rely solely on [Regulation 29] to find against the airline.”
It called on the government to rewrite the regulation “as a matter of urgency”, insisting: “A clear statement of the right to recovery is needed.”
The AAC welcomed a proposal that “the [refunds] regime better caters for extreme extenuating circumstances” by “offering flexibility” over the maximum 14-day time limit on refunds. It notes this “would allow businesses to vary consumer expectations” but also points out: “Scheduled airlines are paid through BSP [Iata’s Billing and Settlement Plan] which in the UK operates fortnightly. [So] there need to be discussions with Iata.”
The association also backed a proposal to recognise use of refund credit notes in exceptional circumstances, noting: “The EU is proposing to allow the issue of vouchers if the customer is prepared to accept them as an alternative to a cash refund within 14 days and we endorse this.”
The AAC called for greater clarity on the circumstances in which a customer can cancel a holiday and expect a full refund, pointing out: “Historically, the travel industry used FCDO [Foreign Office] advice as the determinant of when holidays should be cancelled. As currently drafted, the regulation is wider than that. We suggest much more clarity is given. It is vital to… determine exactly when those circumstances have arisen.”