Abta’s board has confirmed customers “should be offered a full refund in such circumstances” in accordance with its Articles of the Association.

The decision was backed unanimously, Abta said.

Abta’s chief executive Mark Tanzer said: “This clarification by the Abta board is welcome, and will reassure customers who book with Abta members that the protections of the package holiday still apply, notwithstanding the challenges of the current Covid-19 situation.

“Members may well be able to offer affected customers alternative destinations or travel dates, but Abta has maintained since the beginning of the crisis that it expects its members to recognise refund obligations where they arise, and to work with customers to settle these obligations at the earliest opportunity. 

“While we fully recognise the pressures faced by many members at present, the Abta board’s position on this refund issue is in the best interest of customers, of the Abta membership as a whole, and of the package travel industry.”