Throughout the whole Covid-19 pandemic, we have been told to “do the right thing” as individuals.
We’ve been told to think about how our actions have ramifications on the wider society. This is true of the current situation where customers are demanding refunds for their cancelled trips.
If everyone was given a refund, it would be like a run on the banks, and the operators or airline would go under very quickly.
It would mean thousands of customers would not be going on their booked holiday at any time – in the near or far future.
It has taken the big players such as Tui, British Airways or Virgin Atlantic many years to get to where they are and they can’t be replaced quickly. It would take years for other players to step into their role.
These are exceptional times. Travel operators and airlines aren’t being dishonest, it’s that they are in very difficult situation and need to survive.
The sheer number of people contacting the companies is overwhelming. A lot of their staff are furloughed and so with much smaller customer service teams, customers aren’t getting responses.
Customers have a legal right to their money, but firms are holding firm, simply for survival. Parliament should ultimately be changing the law to protect the industry but it isn’t currently meeting and so is unable to pass new laws.
Abta is encouraging travel companies to offer interim "refund credit notes". By accepting a credit voucher or rebooking, the customer may be forfeiting their legal rights, but they are doing the right thing for themselves, other customers, travel companies and their thousands of staff.
By holding the line, the customer is helping the supplier to survive the crisis, so they can take that holiday at a later date.
We support both sides as we can see what is best for everyone.
We are finding that once we explain the situation to our customers, the large majority of them are happy to be issued a voucher or rebook as they know their money is protected and it’s the best solution for them and the industry.
Steve Witt is co-founder of homeworking firm Not Just Travel.
Obviously, this is a really tough time for people, and we are sympathetic to that. The Covid-19 crisis is entirely unprecedented and unsettling. At the end of the day, looking after loved ones and their health and personal finances are priorities.
To clarify, we would say if people can, and they are financially able to, then they could consider a credit voucher or rebooking with their travel company for next year. We saw around 54% of customers rebooking last week, and that figure has only gone up as more have done so.
But if this isn’t something they can do, and they are really struggling with finances, then of course we would say to ask for a refund. It's a tough time for everyone, but we are working round the clock to try and help both our customers and the wider travel community to get the best advice and support.
For anyone who is not in a position to rebook or accept a credit note we as a company are doing everything possible to help customers obtain a refund and would encourage them to do so. We appreciate that in the current climate that this is not necessarily an easy process or as quick as it should be, which is why we have a team dedicated to helping customers do just that.
We try and provide clients with an unbiased and transparent view of their options which in some cases means obtaining credit notes can be more financially appealing with certain operators giving more than 100% back in credit notes.
Witt provided this statement to TTG as an addendum to his comment following publication.