Trade awaits Govt decision on allowing credit notes instead of refunds
The travel trade is preparing to be allowed to issue credit notes instead of refunds under new Government guidance that is expected to be announced soon.
It’s reported transport secretary Grant Shapps will soon announce a change in the Package Travel Regulations to allow a credit note system, following a relaxation of the rules by the European Commission on Friday.
In the event of a company failure before the credit note is used or cashed, financial protection would be provided by the ATOL scheme.
The news has been welcomed by ABTA, which has been asking the Government to help the industry out.
Chief executive Mark Tanzer said: "ABTA has been in urgent talks with Government ministers and officials throughout the week, as well as working with European trade associations at a European government level, to progress the asks that we set out in our letter to the Prime Minister on Monday.
"The European Commission updated its guidance on the Package Travel Directive (PTD) in relation to customer claims refunds.
"It encourages customers to accept credit notes, as long as the customer is allowed to ask for a full refund, eventually, if he or she does not make use of the credit note towards a new booking.
"Crucially the Commission states that the credit note should be covered by appropriate insolvency protection. This is an extremely positive step and shows that the Commission recognises the strains being placed on tour operators due to Coronavirus.
"The Package Travel Directive is the legal framework on which the UK Package Travel Regulations are based, and we now need the UK Government to follow the European Commission’s lead and confirm a similar approach.
"This new guidance will give customers the essential assurance that they will either get a holiday or their money back, as well as providing a much needed helping hand to travel companies through these difficult and unprecedented times."
Lisa
Lisa joined Travel Weekly nearly 25 years ago as technology reporter and then sailed around the world for a couple of years as cruise correspondent, before becoming deputy editor. Now freelance, Lisa writes for various print and web publications, edits Corporate Traveller’s client magazine, Gateway, and works on the acclaimed Remembering Wildlife series of photography books, which raise awareness of nature’s most at-risk species and helps to fund their protection.
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