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TThe effects of the coronavirus crisis have been felt everywhere, but one of the most affected sectors has been the vacation industry. With resorts closed and all less essential travel banned in countries around the world, 2020 appears to be the year travel was suspended.
Less than two months after the pandemic, thousands of holidays, honeymoons, backpacking trips, cruises, and city breaks have been canceled, or appear to be.
The closure has left hundreds of thousands of consumers out of pocket, in some cases more than £ 20,000. It has also left the travel industry struggling to survive. Here, we try to navigate through chaos.
My flight has been canceled and all they offer me is an alternative flight or coupons – is this legal
No. But that hasn’t stopped airlines from doing exactly that. All flights to or from EU airlines within the EU, and all flights departing from an EU airport, are protected by “denied boarding” rules, which require a full refund at seven days when flights are canceled.
The problem is that enforcing these rights is proving very difficult. Many airlines are making it nearly impossible to get refunds in hopes that customers will reschedule or accept coupons.
After initially pledging to refund consumers within 20 business days, Ryanair has now said they should accept coupons valid for 12 months, which will then be refunded if not used by the end of the year. Alternatively, it says that customers can wait until the “crisis is over” to get a refund.
Refunds on British Airways are being processed only for customer services, making it difficult to contact. It is a similar story across the sector, and the regulator, the Civil Aviation Authority, has so far refused to intervene. Airlines have asked the EU to suspend the rules and allow coupons, although it is difficult to see how this could be applied in retrospect.
Given a non-refund policy, what should I do??
Accepting replacement coupons is risky. While Ryanair seems safe, some airlines have already collapsed and others, including Norway, are in rescue talks.
Coby Benson, a lawyer for specialized flight compensation firm Bott and Co, says the law is on the side of cash reimbursements. Advise customers to submit their refund request using the following text:
“I understand that my flight [flight number] in [flight date] it has been canceled and therefore I request a full refund in accordance with Articles 5 (1) (a) and 8 (1) (a) of EC Regulation No 261/2004. For the avoidance of doubt, I do not accept a travel voucher. “
There is evidence that passengers have received refunds, but only after long waits.
If the airline does not respond or refuses to comply, it can issue small court proceedings or use the Alternative Dispute Resolution. You will need the address of the airline, which can usually be found online.
Benson says that all claims for flights that started or ended in the UK can be heard in the courts in Britain. The other option is to approach your bank card provider (see below).
My flight worked as scheduled, but I was unable to continue due to the crash. So what?
Surprisingly, several airlines are still operating flights in and out of UK airports, which means the trip is not canceled.
Richard Colbey, a lawyer for Lamb Chambers, says the fact that it is currently illegal to go on vacation, for example to Lisbon, means that the contract between the passenger and the airline can be considered “frustrated”. In such cases, a refund must be made, although the customer may have to go to court to obtain the money.
The easiest option for many will be to claim travel insurance. Because the government advised against all but essential trips, policies should pay cancellation claims as long as you purchased it before the pandemic was declared on March 11.
I had a reserved vacation packageWhat are my rights?
Tour package operators must reimburse customers within 14 days of canceling a trip. However, in many cases refunds have been denied and tourists were told that they must rebook or accept coupons.
Tui said this week that he would give customers who accept vouchers a “reserve incentive” of 20%, extra money to spend on their next break. However, you are not required to accept the coupons and you can insist on a refund.
Your replacement or new booking coupon is protected by the government-backed Atol scheme in case the tour operator collapses before taking the trip.
If a refund is not offered, please write to the travel company indicating that you want one under the terms of the travel package and the related regulations of the 2018 travel arrangements, noting that you will not accept coupons. If you have lost your job or income, request to be moved to the front of the line.
Travel insurers will not pay when the tour operator is legally obligated to reimburse and is still operating.
I am booked to leave during the May or June semester, but I don’t want to go
The next big date on the holiday calendar is May 25, the start of the semester in some parts of the UK, but travel seems unlikely to go ahead.
For those planning DIY trips, it seems highly unlikely that European countries will accept guests: France said this week that its beaches would remain closed until June.
If you plan to travel and your trip has not yet been canceled, the advice is to do nothing. If the Ministry of Foreign Affairs continues to discourage all but essential trips, your tour operator will have to cancel and you will be owed a full refund.
Even if you do not intend to travel, do not cancel the vacation yourself, as you will lose your reservation and possible refund.
It is a similar story for travel to the UK. Whether this happens will depend on the blocking measures still in place. Holiday homes in Cornwall, for example, can be technically accessible in May and June. But will the government allow such travel?
What happens to my Airbnb reservation?
The company is offering free cancellations for those who booked their trips before March 15 and planned to register before the end of May. Stays from June 1 onward, and those booked after March 15, currently have normal cancellation terms, unless you are ill and can demonstrate extenuating circumstances. Airbnb constantly changes its terms, so check for the latest updates.
What happens ferry companies?
Stena has earned praise from readers for offering vouchers and refunds on her trips to the Netherlands and across the Irish Sea, even for non-refundable tickets, even though her ferries are still operating. However, Brittany Ferries has canceled all passenger departures until May 15 and only offers credit notes. Again, you don’t have to agree to this: Consumers can request a refund for canceled services, which must be provided within seven days.
P&O is still running its services and is therefore not canceling, although its potential passengers clearly cannot use the service during the block. It only offers coupons, which should be used for future reservations.
I had a reserved vacation home but the owner will not refund me me
Many homeowners have offered alternative dates later in the year, which could be a very attractive option for August, but this won’t suit everyone.
On March 23, the government ordered the closure of all vacation accommodations, except in some circumstances. Until the ban is lifted, bookers can insist on a refund, arguing that the contract was deemed frustrated. You can expect a battle, if our mailing bag is something to go by, but the competition regulator has warned companies that they could face legal action if they don’t reimburse customers.
I have paid a deposit in a summer trip and the vacation company is now requesting the rest, what should I do?
This is a puzzle that many people face. In general, the advice is to pay the balance due, because if you do nothing you will be considered to have canceled and lose the deposit.
If the holiday is subsequently canceled, we will refund all your money. This week easyJet Holidays said that customers who had paid travel deposits this summer could use them next year. Other operators may do the same, so it’s worth asking if you want to delay a year.
Finally, consumers will have to consider their financial situation. If you paid a £ 50 deposit on a £ 2,000 cruise that you now have no intention of taking, it would probably be better to accept the £ 50 loss than to pay the rest and fight to get it back.
What will my travel insurance cover?
Those with good-quality (expensive) annual or one-time policies purchased before the virus was declared a pandemic have the best chance of receiving payment. However, insurers will not pay when the tour / airline operator simply declines a refund or offers coupons. Most policies purchased after March 11 will not offer any Covid-19 related claims.
If your airline collapses before your departure, half of the policies, those with airline scheduled failure coverage, should compensate customers. If you have to cancel a holiday on, say, in September because you had to bring older parents, and the government / doctor advised them not to travel, this claim should be successful as long as you have purchased the policy and holiday before March.
If your legitimate claim is rejected, the Financial Ombudsman Service can resolve your dispute free of charge. There are indications that some travel insurers will reject claims and expect claimants to give up. Do not do.
Will my debit or credit card provider come to my aid?
Consumers who purchased their trips using bank cards have two other ways to go down if they are denied a refund: a chargeback or a Section 75 claim.
In case of breach of contract (vacation / flight have not been provided), you can request your bank to reverse payments. The bank has no legal obligation to process a chargeback, and the retailer may object, but consumers have had success with them in the past. If your online travel agent, in particular, won’t deal with your refund, it’s worth trying a chargeback.
Section 75 claims are a legal obligation and make the credit card company jointly responsible for the service purchased, provided it costs more than £ 100 and has been purchased directly from the provider. If the airline goes bankrupt and you purchased the ticket from them directly, the credit card provider must reimburse you.
The problem is that banks are reluctant to process Section 75 claims at best, and there have been reports that some refuse to process them in the current climate. When things finally calm down, we suspect that many passengers will be forced to go down this route.
Can I book a trip for Later in the year?
You can. Whether it is wise is another matter.
The safest trips to book are probably in self-contained accommodations that won’t require a lot of social mixing. Self-guided walking or cycling tours may be possible. But it is not clear if the countries will allow tourists to enter.
It is probably worth waiting to see how the blocking measures are eased. Once that is clear, expect an avalanche of bookings, particularly for accommodation in the UK. If you want to go abroad, ferries might be a better option than flying.
Is the home exchange going to grow?
Home swapping could be an answer to our vacation needs as families seek a change of scene. Home swapping would allow for the physical isolation that may still be required. It is also (almost) free.
The Guardian’s home exchange service is an excellent starting point and is very strong on UK exchanges. A six-month plan costs £ 35. Homeexchange.com is good for international exchanges, but it costs $ 150 a year to become a member. There are a host of other sites that connect people looking to exchange.
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