ABTA has power to terminate membership DO NOT PUBLISH

On the Beach and Loveholidays could have their ABTA membership terminated if the association concludes the operators have committed a serious breach of its code of conduct.

ABTA has launched a preliminary investigation after both companies were accused of failing to offer full refunds to customers booked to travel to Spain.

Should there be a case to answer, the matter will be referred to ABTA’s code of conduct committee who will determine the punishment.

ABTA refused to be drawn on the investigation, stressing it was in its early stages.

The association has a range of powers under its code of conduct regulations, including instructing an offending member not to continue a particular practice, or imposing a financial penalty, the amount of which is at the discretion of the code of conduct committee.

But the ultimate sanction is the termination of membership.

Loveholidays appeared to defend its policy of not refunding the air component of a package if the flight went ahead.

 "Many of the regulations governing travel refunds were implemented before Covid-19, and therefore were not designed to address the reality the entire travel industry is facing today," a spokeperson for the operator said.

"Despite the new UK Government advice regarding Spain, if flights operate and hotels are open, this advice doesn’t affect the terms and conditions of package holidays which would still be capable of being delivered under the PTRs

"In instances where the customer has opted to cancel their holiday prompted by a change in FCO guidance, we have arranged for a refund for the cost of their original accommodation and any transfer services.  As with regards to flights, airlines are all operating different policies – some are cancelling flights, but the vast majority of airlines are continuing to fly to those destinations."

On the Beach also defended its stance.

"Regulation 12(7) of the Package Travel Regulations which states: "in the event of unavoidable and extraordinary circumstances occurring at the place of destination or its immediate vicinity and which significantly affect (a) the performance of the package; or (b) the carriage of passengers to the destination the traveller may terminate the package travel contract before the start of the package without paying any termination fee."

"Even with the FCO advice in place, that is not the situation here. Flights are operating, airports are open, hotels (or suitable alternatives) are available so the circumstances in question do not significantly affect the carriage of passengers to the destination or the performance of the package. 

"There may be minor differences to manage the risk just as there are at home (e.g. social distancing, face masks etc) but this does not significantly affect the package.

"If customers affected choose to cancel their holidays, we will offer a full refund on accommodation and transfer costs, and waive any administration fees and we will refund the flight cost if the flight is cancelled and refunded by the airline."

ABTA yesterday released a statement saying customers have a ‘right under the Package Travel Regulations to cancel for a full refund where there are unavoidable and extraordinary circumstances at the destination that significantly affects the performance of their package holiday’

"Such situations have usually arisen when the Foreign and Commonwealth Office (FCO) has issued advice against travel to the destination," a spokespeson said.

"ABTA is aware that some operators are not offering full refunds for package holidays despite the change in FCO advice to Spain and is carrying out preliminary investigations under its Code of Conduct."