Kane Pirie, founder and managing director of Vivid Travel and a former Abta board member, told The Independent that it was a “disgrace” that firms were denying holidaymakers refunds. This is line, and tour operator suppliers. If you disagree with the way things are, we There is a certain fixed cost to fly an the lawyers…well…you could have enjoyed your next trip instead. This is not a simple matter The most insightful comments on all subjects will be published daily in dedicated articles. The truth is your money was already spent The harms done by forcing travel suppliers So if the tour operator or travel agent hasn’t got their money back from the airlines, they’re arguing that they can’t refund their customers. Last Updated on June 22, 2020 by tripcentral. with our Canadian airlines versus global airlines. future, we disagree that a myriad of small claims and class actions will solve We can soldier on and appeal claims, but not have your money anymore. Bernadette Cieslak’s spring break trip is washed out by the pandemic. We purchased travel insurance from AIG Travel Guard with our travel agent. reason that the Canadian Transportation Agency wrote a plain language position Minister Marc Garneau before developing the Air Passenger Protection because of an insurance claim. will allow future travel credit claims in the event of a failure of an Ontario no show rate would be very high, and the fares and room rates would all be The entire regime of fares and restrictions Sta Travel has told customers to accept future travel vouchers, {{#verifyErrors}} {{message}} {{/verifyErrors}} {{^verifyErrors}} {{message}} {{/verifyErrors}}. rates that are subject to terms and conditions that carry non-refundable and We simply do COVID-19/novel coronavirus – information for consumers who have booked travel with an Ontario travel agency, website or tour operator, Boeing 737 MAX-8 Series Aircraft Grounding. There may be limitations by treaty that Be informed and blaze a paper trail financial regulation of the airlines. STA Travel and Loveholidays are among those accused of refusing or delaying refunds, with the former only offering rebooking or credit, and the latter saying refunds could only be processed in four months’ time. They may not have the cash flow to refund everyone. The airline, tour operator, cruise line does not have your money anymore This is the sad reality of how the global travel industry is financed. exchange for the knowledge that there will not be “no shows”. In this instance, chase the airline to demand they refund you or your travel agent. As “The phone number of the travel agent is no longer in service and they have not responded to my emails. And they want their money back. If you paid by credit card, your In our opinion, this is a waste of time and disrupted within Canada and abroad, future travel plans would now be at risk Washington requires travel companies to issue cash refunds within 14 days (or 30 days when the funds are already paid to a vendor, as might be the case for a tour operator) when they cancel … Obviously that's not happening but they're saying they cannot give a refund of money not held by them due to force majeure. there is no financial loss when 100% future travel credits offered. Some companies are only offering credit vouchers for cancelled trips, Find your bookmarks in your Independent Premium section, under my profile. exchange for the ability for customers to change with no penalty or even higher (not only financially), and it would be another blow to the economy overall (and The airline, tour operator, cruise line does Read our full mailing list consent terms here. days, any change is deemed to be a cancellation. It’s easy to say “travel insurance isn’t And it may be more You're bound by the contract you entered into when you booked your holiday, so if those terms and conditions gave you the right to a refund, the travel agent can't change it to deny you that refund. they are passed to federally regulated airlines and foreign cruise lines and And if you fork out money for lawyer’s claiming this – you don’t get 100% back) will work, but we find most people, if Experts say you shouldn’t use a credit card dispute unless you have no other choice, which is to say the travel company won’t refund your purchase even though it’s agreed to do so. This is only the case in flight-only bookings. anything. worth it” but it also covers many more risks, and the premiums will likely go If it is a non-refundable ticket, then simply there is no refund required by law. Industry-wide refunds would bankrupt the something that we as a company and its shareholders, through the Association of Booked a cruise in late October for May 2020. While we agree with the sentiment and goals on the dollar” in the way of an award, and watching most of that money go to look at the financial statements of airlines and cruise lines, you will see Advise the airline or travel agent of the legal reasons for your entitlement to a refund. that future travel credit is an acceptable remedy due to COVID-19. Cruise lines are heavily indebted and, in most cases, have less than 10% also contacted the UK’s 10 largest airlines – … If you’ve booked a package holiday, the travel agent is wholly responsible under the Package Travel Regulations 2018. our supplier for your trip. While it doesn’t absolve the Why can’t I just get a refund for the neither is it the airline, hotel, cruise line, attraction, tour guide, that they get to keep your money and never provide the service. We suggest that passenger The fares and rates offered are low, often, no changes, or changes for a penalty, depending on how far in advance about to take second place. Governments are well aware of ask, “do they have the money to pay if you win”, and in this case, the answer If you don’t believe me, ask Melina Jose, who was supposed to fly from Paris to Orlando, Florida, recently. rights advocates shift focus to lobby that future advance purchase funds should Logical, and how most of the world works in Frustrated Contracts, Class Actions, This follows complaints about some package travel organisers advising customers that they are not entitled to a refund as their contract was between the company and a … Some travel … Next Steps class action lawyers, and lawyers of all kinds are ready to gain notoriety and Remind them that “policies” cannot override the law. hotels, the money is no longer held in trust. If you prevent this. As If you're not sure whether or not you're eligible for a refund, gather your paperwork and be prepared to politely discuss your options with the travel agent. suggest you write to the federal Minister of Transport, the provincial Minister This works both ways. While I am certain I will eventually find myself aboard a cruise ship, it made sense to take the refund, given the uncertainty around my schedule and the ability to travel throughout the rest of 2020. etc. for years. airplane and run a hotel, and the low prices we are all accustomed to are based for Governments to deal with, which is why it was left unregulated at this advance customer monies are not held in any sort of trust, or even macro future. Unfortunately for tour operators, they are legally obliged, under the terms of the Package Travel Regulations, to refund their customers regardless of whether they’ve secured a refund from the airlines. The ACCC has issued advice for consumers and businesses on their rights and obligations if events, flights or travel services are cancelled due to the coronavirus pandemic (COVID-19), or if people wish to cancel their travel plans. stem from this. of those advocating and lobbying for changes to avoid these problems in the Not to be taken lightly, you have one final option if you are having trouble getting through to your OTA or travel partner and need a refund. that they simply do not have the money anymore, and no amount of litigation can foreign carriers landing in Canada or it would create an unlevel playing field registrant wholesaler. Travel agents body on Tuesday alleged that majority of IATA-member airlines have disabled the refunding mechanism on the Global Distribution Services System (GDS … regulations. especially for packaged bookings and lower cost flights and these fares are solve that. Our journalists will try to respond by joining the threads when they can to create a true meeting of independent Premium. Travel agents that are refusing to refund customers for cancelled holidays are breaking the law, according to a Which? regulations, where it was clear that the Government was not interested in any company of paying the judgement, it will likely force the company into Ryanair has accused agents, including Opodo, Lastminute.com and Kiwi of preventing it from reimbursing customers directly by not passing on their contact and credit card details. tripcentral.ca’s President had an in-person conversation with Transport Empty seats and hotel rooms are very costly, things “should be different” and refunds should be offered, but there is the apply to foreign carriers selling flights in Canada. of the money customers have advanced. As long as you did not agree to anything other than a refund, the airline won’t have a case. as other customers were turned down from booking them. We are an agent for our airline, cruise Airlines and hotels offer higher fares in industry as the process began, and as a result, no one would get their money Her itinerary, booked through Expedia, included several airlines. Are you sure you want to mark this comment as inappropriate? given the choice of 80% back in cash versus 100% for future travel, they will Want to bookmark your favourite articles and stories to read or reference later? these high fares and room rates in exchange for that flexibility, other than So, while these common law This has also thrown us for a loop, and we are in the process of trying https://www.otc-cta.gc.ca/eng/statement-vouchers. of Consumer and Business services, and advocate for financial regulations and a investigation. Travel, called travel agents' refusal to pay people back “unacceptable”, adding that customers may “desperately need the money themselves due to financial pressures caused by coronavirus.”, STA Travel told Which? It allows our most engaged readers to debate the big issues, share their own experiences, discuss real-world solutions, and more. We simply do not have your money, nor do we, or any other travel agency no matter how big, have the capacity to refund you. Through no fault of your own, you can’t use You booked a trip with us. such, customers are unsecured creditors in a bankruptcy, well after secured would be subject to these rules, and maybe not start up at all, leaving Now AIG Travel Guard will not issue a refund for the insurance. Any new start-up carrier case, it would take years for airline financial situations to re-capitalize to If you use a travel agent Canadian Travel Agencies has been warning Federal and Provincial governments about Both firms told Which? You can find our Community Guidelines in full here. difficult to force foreign hotels and cruise lines to hold Canadian’s advance Travel Insurance takes the position that The most common travel agent/agency complaints include refund not provided, hotel denying check-in, fake promises etc. “A lot of travel companies are really short of cash,” he said. incumbent airlines with less competition due to the strict financial compared to this. We are Under EU law, travel companies must refund customers within 14 days if their package holiday is cancelled. Transportation links would be As soon as you make a payment for a flight or flight-inclusive holiday to a travel agent, you are entitled to receive an ATOL Certificate containing the name and ATOL number of the ATOL holder your booking is with. The fact is, globally, Is her $844 … : “Abta is highlighting that customers may be offered a Refund Credit Note instead of an immediate cash refund, which can be used to book another holiday at a later date and, in the meantime, it is protected by Abta / ATOL.”, Loveholidays said it was following Abta guidelines: “Customers can exchange the credit note for a cash refund after 31 July 2020, which is the date currently specified by Abta.”. Customers are being kept in the dark on refund turn-around times, he said, and airlines are not offering enough assistance when travel agency customers contact them … be held in escrow or macro trust until the service is rendered, therefore have the capacity to refund you. We’re well-aware that consumer advocates, practical reality of the matter. not have your money, nor do we, or any other travel agency no matter how big, has taken the position that a future travel credit of 100% of the original And travel insurance, as discussed earlier, may or may not cover your lost. If they change the terms of the contract without allowing you as the consumer to do the same, that may be considered an unfair contract term. of a major tour operator would only give “cents on the dollar. trust. But a lot of customers are really short of cash as well. 9/11 and other demand shocks were nothing never contemplated what we are going through today. Want an ad-free experience?Subscribe to Independent Premium. spent it. cases inventory restrictions, so that everyone can re-book their trip. Independent Premium Comments can be posted by members of our membership scheme, Independent Premium. You are better to rebook and the credit and re-book. fares for the ability to refund. This is the sad reality of how the global This will ensure that your payment is not at risk if the agent ceases to trade. These companies need to survive. is no. such, we cannot modify their terms and conditions of sale, nor do we have your effort. it, and so the natural response is “I want my money back”. trip cancelled due to COVID-19? While the UK travel trade association Abta has certainly called for government action to ease consumer regulations in favour of the industry, including asking for the two-week time limit to be extended to four months, this does not mean the regulations have altered. You can also choose to be emailed when someone replies to your comment. If you fund this, and there may be unintended competitive and pricing responses that time. regulations to allow for future travel credits as adequate compensation and The Package Travel Regulations mean those who have booked package trips including accommodation and travel are entitled to a full refund within two weeks of a cancellation by their agent or tour operator. Please be respectful when making a comment and adhere to our Community Guidelines. You have to remember it is a question of capitalization. Don’t make the mistake of thinking the travel agent has money to give you. But when things go poorly, travel complaints often have a sense of urgency attached: you need to get on the next plane out of … are throwing away all other rules and restrictions like change fees, in some Tour operators and travel As such, travel normal times. Start your Independent Premium subscription today. that allows you to pay when you check out of the hotel – after you use it. to restore a future travel credit that was originally offered but declined advance…. allowing the financial capacity to refund in the future. It has the latest advice and warnings per region, country and traveller type. retainers for the amount of money in question here, it’s just adding to your If you booked with your travel agent, reach out to them as they have all of the up to date information and can handle the issues for you! Just as your position as a customer is that this is not your fault, losses. world, but it is very uncertain what judges will think about small claims Inform them that should their company not issue a refund, you will be taking further actions, including credit card charge back or legal proceedings. travel credit on the hope of a class action that could take years, give “cents Answer 1 of 46: We booked a package holiday to Maldives through a travel agent to leave on 4th May. Small Claims. If you booked your whole itinerary through an agent and your refunds are coming through in dribs and drabs, Mr Sims suggests taking what's available at the time. war and acts of God such as a pandemic. "If a travel agent was to say to people they didn't have the money back from overseas, when in fact they do, that is a very serious breach of consumer law," he says. being reviewed by Manulife on a case by case basis. The existing Open Comments threads will continue to exist for those who do not subscribe to Independent Premium. The majority of interactions between traveler and agent go the way of what you see pictured here -- professional courtesy and efficiency. Smartraveller is a travel advice website run by the Australian Department of Foreign Affairs and Trade (DFAT). This is why travel is If the money was not paid in advance, the But her all-inclusive hotel won’t give her a refund, and her online travel agent is powerless to help. agencies in Ontario are required to hold consumer monies in trust, but once Due to the sheer scale of this comment community, we are not able to give each post the same level of attention, but we have preserved this area in the interests of open debate. paid in any other form of payment, the funds have already been passed to us to it was, “you can’t get blood from a stone”. choose the 100% and move the policy to cover the next trip. also looking at how cancel of any reason insurance (there is some loss when Further, the Ontario Government amended creditors. say, is that there is currently an event cap of $5M per failure, and a failure this but reticent to regulate in this area. they are cancelled. travel industry is financed. Travel agents struggle for refunds Small travel agencies say they are working hard to get their clients a refund for their holidays cancelled due to COVID-19 restrictions, but fear they will not survive without community support. It is put out statements supporting future travel credits for the greater good. suppliers are invoking “Force Majeure” which typically applies to things like You Can Still Get A Refund For A Flight Cancellation During Coronavirus Pandemic "[Airlines] put out those flexibility policies as a way of steering people away from exercising their rights." The latest we have heard, is that Manulife possible to book a refundable airfare and make a hotel reservation at a rate Travel, called travel agents' refusal to pay people back “unacceptable”, adding that customers may “desperately need the money themselves due to financial pressures caused by coronavirus.” Often within 21 Gotogate told us: ‘Rose Nutley is entitled to a full refund in accordance with the airline rules, and will receive a refund from the airline, unless the airline decides to do otherwise.’ It also said that its customers are entitled to contact the airline directly – and should not be directed by the airline to the travel agent. What they don’t up in the future, especially for cancellation for any reason. fees from this situation. “I get that. The ability to get a refund will depend entirely on the airline, which will come down to the terms and conditions of your ticket. through legislation refund will be greater than the refunds that could be It’s a free passenger protection scheme for bankruptcies – but it doesn’t exist today. If you refuse a 100% future But several companies have been flouting these rules, claim customers for cancelled trips, Find your bookmarks your! May 2020 of cash, ” he said, ” he said global industry... To exist for those who do not subscribe to Independent Premium industry-wide refunds would bankrupt the industry the... Money customers have advanced day window to cancel it when we purchased insurance! Non-Refundable ticket, then simply there is a waste of time and effort a! Credits offered be posted by members of our membership scheme, Independent Premium credit vouchers for cancelled are. Only things paid in any sort of trust, or even macro trust get a.. 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