Under the Package Travel Directive (PTD), package organisers must take out insolvency protection and guarantees which cover refunds and repatriation in case of bankruptcy.

However, Abta has said the EC is now encouraging customers to accept credit notes as long as they can ask for a full refund at a later date – if it is not used towards a new booking.

“This is an extremely positive step and shows that the [European] Commission recognises the strains being placed on tour operators due to coronavirus,” said a spokesperson from Abta.
 
“The PTD 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.”