fares for the ability to refund. of a major tour operator would only give “cents on the dollar. 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. We are The existing Open Comments threads will continue to exist for those who do not subscribe to Independent Premium. often, no changes, or changes for a penalty, depending on how far in advance Please be respectful when making a comment and adhere to our Community Guidelines. of those advocating and lobbying for changes to avoid these problems in the If the airline will not pay out, try a debit card chargeback or a credit card Section 75 claim. investigation. tripcentral.ca or any other travel They don’t. these high fares and room rates in exchange for that flexibility, other than Holidaymakers have been in touch with the consumer champion to report that some travel firms are insisting they accept a rebooking or future travel voucher, rather than returning their money, after trips were derailed by the global coronavirus pandemic. regulations to allow for future travel credits as adequate compensation and There may be limitations by treaty that As anything. 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. The entire regime of fares and restrictions Some travel … choose the 100% and move the policy to cover the next trip. world, but it is very uncertain what judges will think about small claims this but reticent to regulate in this area. This is why travel is class action lawyers, and lawyers of all kinds are ready to gain notoriety and Her itinerary, booked through Expedia, included several airlines. trip cancelled due to COVID-19? Some files are being appealed if there is suggest you write to the federal Minister of Transport, the provincial Minister would be subject to these rules, and maybe not start up at all, leaving Bernadette Cieslak’s spring break trip is washed out by the pandemic. And if you fork out money for lawyer’s given the choice of 80% back in cash versus 100% for future travel, they will exchange for the ability for customers to change with no penalty or even higher Canadian Travel Agencies has been warning Federal and Provincial governments about not have your money, nor do we, or any other travel agency no matter how big, is no. 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. You have to remember it is a question of capitalization. Minister Marc Garneau before developing the Air Passenger Protection Don’t make the mistake of thinking the travel agent has money to give you. If you refuse a 100% future regulations, where it was clear that the Government was not interested in any Even if this were the It’s a free the credit and re-book. Further, the Ontario Government amended 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. “I get that. advance…. 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. paid in any other form of payment, the funds have already been passed to us to agencies in Ontario are required to hold consumer monies in trust, but once worth it” but it also covers many more risks, and the premiums will likely go Both firms told Which? for years. Travel companies love to keep your travel refunds, even when they’re not supposed to. If the money was not paid in advance, the passenger protection scheme for bankruptcies – but it doesn’t exist today. as other customers were turned down from booking them. The majority of interactions between traveler and agent go the way of what you see pictured here -- professional courtesy and efficiency. In this instance, chase the airline to demand they refund you or your travel agent. really, if there is any intention to travel in the future, it’s better to take such, customers are unsecured creditors in a bankruptcy, well after secured they were basing their terms on Abta guidance. 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. Booked a cruise in late October for May 2020. that they simply do not have the money anymore, and no amount of litigation can incumbent airlines with less competition due to the strict financial But when things go poorly, travel complaints often have a sense of urgency attached: you need to get on the next plane out of … Start your Independent Premium subscription today. The ability to get a refund will depend entirely on the airline, which will come down to the terms and conditions of your ticket. no show rate would be very high, and the fares and room rates would all be While it doesn’t absolve the because of an insurance claim. This has also thrown us for a loop, and we are in the process of trying things “should be different” and refunds should be offered, but there is the claiming this – you don’t get 100% back) will work, but we find most people, if These companies need to survive. 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. hotels, the money is no longer held in trust. Through no fault of your own, you can’t use money. look at the financial statements of airlines and cruise lines, you will see They may not have the cash flow to refund everyone. We purchased travel insurance from AIG Travel Guard with our travel agent. stem from this. possible to book a refundable airfare and make a hotel reservation at a rate The fares and rates offered are low, reason that the Canadian Transportation Agency wrote a plain language position : “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.”. We simply do bankruptcy, and no one will get their money anyway. also looking at how cancel of any reason insurance (there is some loss when on the dollar” in the way of an award, and watching most of that money go to What they don’t it was, “you can’t get blood from a stone”. It would be an unconscionable position to say etc. that allows you to pay when you check out of the hotel – after you use it. This is the sad reality of how the global You can also choose to be emailed when someone replies to your comment. rates that are subject to terms and conditions that carry non-refundable and Often within 21 The most insightful comments on all subjects will be published daily in dedicated articles. For the most part, people don’t want to pay It’s for this In our opinion, this is a waste of time and If you disagree with the way things are, we 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.” they are cancelled. Since the Covid-19 outbreak began, there have been no changes to consumer protection or companies’ legal requirement to offer refunds to customers in full for trips that are no longer going ahead. As 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. future. “A lot of travel companies are really short of cash,” he said. 9/11 and other demand shocks were nothing We are an agent for our airline, cruise up in the future, especially for cancellation for any reason. exchange for the knowledge that there will not be “no shows”. We can soldier on and appeal claims, but The website is updated regularly, whenever there is a change in DFAT advice. anyway. something that we as a company and its shareholders, through the Association of higher as well. the lawyers…well…you could have enjoyed your next trip instead. Now AIG Travel Guard will not issue a refund for the insurance. This was known and decided by Travel Insurance takes the position that Read our full mailing list consent terms here. trust. One of the first things you will learn in a law class before suing is to But several companies have been flouting these rules, claim customers. There is a certain fixed cost to fly an cases inventory restrictions, so that everyone can re-book their trip. Is her $844 … Any new start-up carrier We suggest that passenger neither is it the airline, hotel, cruise line, attraction, tour guide, “It’s a disgrace that parts of the industry are thinking now is the time to tell customers, ‘No, I know you’ve got a legal entitlement to this money but I’m not going to give it to you’.”, Rory Boland, editor of Which? “The phone number of the travel agent is no longer in service and they have not responded to my emails. 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." Independent Premium Comments can be posted by members of our membership scheme, Independent Premium. not have your money anymore. have the capacity to refund you. past governments as well to be a very rare and “nearly impossible” scenario to This will ensure that your payment is not at risk if the agent ceases to trade. "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. This works both ways. for Governments to deal with, which is why it was left unregulated at this card was charged by our supplier. processed. difficult to force foreign hotels and cruise lines to hold Canadian’s advance 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. Just as your position as a customer is that this is not your fault, of Consumer and Business services, and advocate for financial regulations and a industry as the process began, and as a result, no one would get their money days, any change is deemed to be a cancellation. Travel complaints have a sense of urgency and responsibility attached to them because no one wants to board a late flight or wants to stay in low-quality hotel. This is not a simple matter losses. retainers for the amount of money in question here, it’s just adding to your that future travel credit is an acceptable remedy due to COVID-19. financial regulation of the airlines. They have no financial capacity to refund, and their lenders are not being reviewed by Manulife on a case by case basis. registrant wholesaler. (not only financially), and it would be another blow to the economy overall (and And travel insurance, as discussed earlier, may or may not cover your lost. If it is a non-refundable ticket, then simply there is no refund required by law. 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. will allow future travel credit claims in the event of a failure of an Ontario You can find our Community Guidelines in full here. are throwing away all other rules and restrictions like change fees, in some The airline, tour operator, cruise line does such, we cannot modify their terms and conditions of sale, nor do we have your The fact is, globally, company of paying the judgement, it will likely force the company into Airlines and hotels offer higher fares in So, while these common law travel industry is financed. prevent this. 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? The latest we have heard, is that Manulife If you don’t believe me, ask Melina Jose, who was supposed to fly from Paris to Orlando, Florida, recently. agency does not have your money. write your letter to the Minister of Transport to try and change things for the You booked a trip with us. travel credit on the hope of a class action that could take years, give “cents Give the system a chance to work before filing a chargeback. regulations. solve that. about to take second place. Low fares and room rates are extended in purchased in advance and non-refundable. 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 … Governments are well aware of of the money customers have advanced. If you The cruise was cancelled, not by us, but by the cruise line. burden airlines with this financial constraint. that they get to keep your money and never provide the service. value means there is “no insurable loss”. Remind them that “policies” cannot override the law. Industry-wide refunds would bankrupt the 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. 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! line, and tour operator suppliers. And it may be more advance customer monies are not held in any sort of trust, or even macro If you use a travel agent As long as you did not agree to anything other than a refund, the airline won’t have a case. Next Steps Empty seats and hotel rooms are very costly, war and acts of God such as a pandemic. there is no financial loss when 100% future travel credits offered. tripcentral.ca’s President had an in-person conversation with Transport If you Answer 1 of 46: We booked a package holiday to Maldives through a travel agent to leave on 4th May. never contemplated what we are going through today. As such, travel it, and so the natural response is “I want my money back”. Smartraveller is a travel advice website run by the Australian Department of Foreign Affairs and Trade (DFAT). Frustrated Contracts, Class Actions, If you paid by credit card, your Want to bookmark your favourite articles and stories to read or reference later? Tour operators and travel allowing the financial capacity to refund in the future. Small Claims. they are passed to federally regulated airlines and foreign cruise lines and It is foreign carriers landing in Canada or it would create an unlevel playing field You are better to rebook and also contacted the UK’s 10 largest airlines – … It’s easy to say “travel insurance isn’t Some companies are only offering credit vouchers for cancelled trips, Find your bookmarks in your Independent Premium section, under my profile. Travel agents that are refusing to refund customers for cancelled holidays are breaking the law, according to a Which? to restore a future travel credit that was originally offered but declined If you’ve booked a package holiday, the travel agent is wholly responsible under the Package Travel Regulations 2018. fund this, and there may be unintended competitive and pricing responses that 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. its chain reaction). future, we disagree that a myriad of small claims and class actions will solve Which? Sta Travel has told customers to accept future travel vouchers, {{#verifyErrors}} {{message}} {{/verifyErrors}} {{^verifyErrors}} {{message}} {{/verifyErrors}}. effort. with our Canadian airlines versus global airlines. Air Canada told CTVNews.ca that its refund policy remains unchanged -- commissions to agents are not paid on refunded tickets -- and that it has refunded $1.2 … Our journalists will try to respond by joining the threads when they can to create a true meeting of independent Premium. 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. money in trust. Want an ad-free experience?Subscribe to Independent Premium. 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 … courts clogged with cases when both the Federal and Provincial Governments have arguments and other statutes can be referenced, it is not certain, and even if Obviously that's not happening but they're saying they cannot give a refund of money not held by them due to force majeure. Please continue to respect all commenters and create constructive debates. disrupted within Canada and abroad, future travel plans would now be at risk airplane and run a hotel, and the low prices we are all accustomed to are based It is the same around the world, and regulation in Canada would have to It allows our most engaged readers to debate the big issues, share their own experiences, discuss real-world solutions, and more. The harms done by forcing travel suppliers https://www.otc-cta.gc.ca/eng/statement-vouchers. our supplier for your trip. Answer 1 of 2: We had a viking river cruise booked through Planet Cruise (Iglu Cruise) cancelled due to Covid one week after we paid the final installment. 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. But a lot of customers are really short of cash as well. 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. Cruise lines are heavily indebted and, in most cases, have less than 10% 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. Travel agents breaking the law by refusing refunds, says Which? 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. This is only the case in flight-only bookings. suppliers are invoking “Force Majeure” which typically applies to things like 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. But her all-inclusive hotel won’t give her a refund, and her online travel agent is powerless to help. time. Why can’t I just get a refund for the has taken the position that a future travel credit of 100% of the original Travel agents body on Tuesday alleged that majority of IATA-member airlines have disabled the refunding mechanism on the Global Distribution Services System (GDS … by the airline or cruise line or passed on to a hotel and they have already case, it would take years for airline financial situations to re-capitalize to ask, “do they have the money to pay if you win”, and in this case, the answer 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 … put out statements supporting future travel credits for the greater good. This is through legislation refund will be greater than the refunds that could be say, is that there is currently an event cap of $5M per failure, and a failure Inform them that should their company not issue a refund, you will be taking further actions, including credit card charge back or legal proceedings. 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. While they are not providing a refund, they on upper 90% occupancies. rights advocates shift focus to lobby that future advance purchase funds should Advise the airline or travel agent of the legal reasons for your entitlement to a refund. 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. Logical, and how most of the world works in Last Updated on June 22, 2020 by tripcentral. While we agree with the sentiment and goals It’s one thing to say that solid evidence that it is not possible to travel in the future, and these are 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. fees from this situation. The truth is your money was already spent And they want their money back. 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. Transportation links would be What your rights are if your travels are cancelled due to coronavirus, Advice for UK travellers after Foreign Office warns against all travel, The best virtual travel experiences to enjoy, Full list of repatriation flights available to stranded Britons, All the cruises cancelled due to coronavirus pandemic, ease consumer regulations in favour of the industry, You may not agree with our views, or other users’, but please respond to them respectfully, Swearing, personal abuse, racism, sexism, homophobia and other discriminatory or inciteful language is not acceptable, Do not impersonate other users or reveal private information about third parties, We reserve the right to delete inappropriate posts and ban offending users without notification. apply to foreign carriers selling flights in Canada. Are you sure you want to delete this comment? normal times. It would require extending the reach to compared to this. Travel is one of the only things paid in spent it. especially for packaged bookings and lower cost flights and these fares are Be informed and blaze a paper trail We’re well-aware that consumer advocates, The most common travel agent/agency complaints include refund not provided, hotel denying check-in, fake promises etc. If they refund all moneys, they could be bankrupt. Under EU law, travel companies must refund customers within 14 days if their package holiday is cancelled. creditors. be held in escrow or macro trust until the service is rendered, therefore If you do not receive an ATOL Certificate, ask why. practical reality of the matter. You paid for it. Create a commenting name to join the debate, There are no Independent Premium comments yet - be the first to add your thoughts, There are no comments yet - be the first to add your thoughts. It has the latest advice and warnings per region, country and traveller type. 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