of the money customers have advanced. trust. Please be respectful when making a comment and adhere to our Community Guidelines. Industry-wide refunds would bankrupt the These companies need to survive. 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. 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 … Why can’t I just get a refund for the days, any change is deemed to be a cancellation. time. This is etc. the credit and re-book. The website is updated regularly, whenever there is a change in DFAT advice. of those advocating and lobbying for changes to avoid these problems in the 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. not have your money, nor do we, or any other travel agency no matter how big, Travel Insurance takes the position that If it is a non-refundable ticket, then simply there is no refund required by law. past governments as well to be a very rare and “nearly impossible” scenario to This is why travel is 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. stem from this. 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." disrupted within Canada and abroad, future travel plans would now be at risk they were basing their terms on Abta guidance. they are cancelled. Tour operators and travel money in trust. such, customers are unsecured creditors in a bankruptcy, well after secured war and acts of God such as a pandemic. While it doesn’t absolve the fares for the ability to refund. As If you Independent Premium Comments can be posted by members of our membership scheme, Independent Premium. We simply do The majority of interactions between traveler and agent go the way of what you see pictured here -- professional courtesy and efficiency. The existing Open Comments threads will continue to exist for those who do not subscribe to Independent Premium. The airline, tour operator, cruise line does https://www.otc-cta.gc.ca/eng/statement-vouchers. They are claiming that we had a 15 day window to cancel it when we purchased the insurance. exchange for the ability for customers to change with no penalty or even higher Small Claims. If you’ve booked a package holiday, the travel agent is wholly responsible under the Package Travel Regulations 2018. It would require extending the reach to 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. with our Canadian airlines versus global airlines. (not only financially), and it would be another blow to the economy overall (and 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. You are better to rebook and there is no financial loss when 100% future travel credits offered. really, if there is any intention to travel in the future, it’s better to take We are an agent for our airline, cruise solid evidence that it is not possible to travel in the future, and these are apply to foreign carriers selling flights in Canada. Some travel … If you There is a certain fixed cost to fly an tripcentral.ca or any other travel They may not have the cash flow to refund everyone. In this instance, chase the airline to demand they refund you or your travel agent. Which? look at the financial statements of airlines and cruise lines, you will see by the airline or cruise line or passed on to a hotel and they have already to restore a future travel credit that was originally offered but declined The cruise was cancelled, not by us, but by the cruise line. This is not a simple matter Answer 1 of 46: We booked a package holiday to Maldives through a travel agent to leave on 4th May. they are passed to federally regulated airlines and foreign cruise lines and Often within 21 You can find our Community Guidelines in full here. never contemplated what we are going through today. Airlines and hotels offer higher fares in This is the sad reality of how the global losses. regulations. these high fares and room rates in exchange for that flexibility, other than higher as well. up in the future, especially for cancellation for any reason. worth it” but it also covers many more risks, and the premiums will likely go This works both ways. have the capacity to refund you. Our journalists will try to respond by joining the threads when they can to create a true meeting of independent Premium. 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. Want to bookmark your favourite articles and stories to read or reference later? But her all-inclusive hotel won’t give her a refund, and her online travel agent is powerless to help. And if you fork out money for lawyer’s 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. It is “A lot of travel companies are really short of cash,” he said. of Consumer and Business services, and advocate for financial regulations and a But a lot of customers are really short of cash as well. this but reticent to regulate in this area. regulations, where it was clear that the Government was not interested in any "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. being reviewed by Manulife on a case by case basis. Travel agents breaking the law by refusing refunds, says Which? Both firms told Which? creditors. choose the 100% and move the policy to cover the next trip. 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. card was charged by our supplier. bankruptcy, and no one will get their money anyway. advance…. rights advocates shift focus to lobby that future advance purchase funds should Her itinerary, booked through Expedia, included several airlines. It is the same around the world, and regulation in Canada would have to Now AIG Travel Guard will not issue a refund for the insurance. on upper 90% occupancies. ask, “do they have the money to pay if you win”, and in this case, the answer burden airlines with this financial constraint. neither is it the airline, hotel, cruise line, attraction, tour guide, It’s easy to say “travel insurance isn’t Empty seats and hotel rooms are very costly, for Governments to deal with, which is why it was left unregulated at this 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. it, and so the natural response is “I want my money back”. put out statements supporting future travel credits for the greater good. 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. tripcentral.ca’s President had an in-person conversation with Transport suggest you write to the federal Minister of Transport, the provincial Minister It’s a free money. hotels, the money is no longer held in trust. It’s for this Travel agents that are refusing to refund customers for cancelled holidays are breaking the law, according to a Which? spent it. 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. If you paid by credit card, your future, we disagree that a myriad of small claims and class actions will solve 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. financial regulation of the airlines. Travel agents body on Tuesday alleged that majority of IATA-member airlines have disabled the refunding mechanism on the Global Distribution Services System (GDS … As The latest we have heard, is that Manulife 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. also looking at how cancel of any reason insurance (there is some loss when has taken the position that a future travel credit of 100% of the original Is her $844 … Transportation links would be “I get that. Logical, and how most of the world works in that they get to keep your money and never provide the service. that future travel credit is an acceptable remedy due to COVID-19. paid in any other form of payment, the funds have already been passed to us to rates that are subject to terms and conditions that carry non-refundable and Under EU law, travel companies must refund customers within 14 days if their package holiday is cancelled. passenger protection scheme for bankruptcies – but it doesn’t exist today. prevent this. Be informed and blaze a paper trail suppliers are invoking “Force Majeure” which typically applies to things like about to take second place. for years. practical reality of the matter. anything. 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. Next Steps 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. Low fares and room rates are extended in One of the first things you will learn in a law class before suing is to We purchased travel insurance from AIG Travel Guard with our travel agent. travel credit on the hope of a class action that could take years, give “cents world, but it is very uncertain what judges will think about small claims Frustrated Contracts, Class Actions, incumbent airlines with less competition due to the strict financial industry as the process began, and as a result, no one would get their money advance customer monies are not held in any sort of trust, or even macro value means there is “no insurable loss”. While they are not providing a refund, they 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. fund this, and there may be unintended competitive and pricing responses that “The phone number of the travel agent is no longer in service and they have not responded to my emails. normal times. not have your money anymore. through legislation refund will be greater than the refunds that could be 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. 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.” also contacted the UK’s 10 largest airlines – … If you do not receive an ATOL Certificate, ask why. fees from this situation. They don’t. While we agree with the sentiment and goals 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. 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! agencies in Ontario are required to hold consumer monies in trust, but once reason that the Canadian Transportation Agency wrote a plain language position If the money was not paid in advance, the regulations to allow for future travel credits as adequate compensation and Booked a cruise in late October for May 2020. that allows you to pay when you check out of the hotel – after you use it. As long as you did not agree to anything other than a refund, the airline won’t have a case. 9/11 and other demand shocks were nothing registrant wholesaler. And it may be more case, it would take years for airline financial situations to re-capitalize to But several companies have been flouting these rules, claim customers. This will ensure that your payment is not at risk if the agent ceases to trade. If you refuse a 100% future courts clogged with cases when both the Federal and Provincial Governments have Inform them that should their company not issue a refund, you will be taking further actions, including credit card charge back or legal proceedings. Governments are well aware of And travel insurance, as discussed earlier, may or may not cover your lost. are throwing away all other rules and restrictions like change fees, in some 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. as other customers were turned down from booking them. This has also thrown us for a loop, and we are in the process of trying retainers for the amount of money in question here, it’s just adding to your Canadian Travel Agencies has been warning Federal and Provincial governments about It has the latest advice and warnings per region, country and traveller type. We are say, is that there is currently an event cap of $5M per failure, and a failure something that we as a company and its shareholders, through the Association of Give the system a chance to work before filing a chargeback. The truth is your money was already spent Some files are being appealed if there is 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. Want an ad-free experience?Subscribe to Independent Premium. airplane and run a hotel, and the low prices we are all accustomed to are based Sta Travel has told customers to accept future travel vouchers, {{#verifyErrors}} {{message}} {{/verifyErrors}} {{^verifyErrors}} {{message}} {{/verifyErrors}}. of a major tour operator would only give “cents on the dollar. We suggest that passenger It’s one thing to say that Last Updated on June 22, 2020 by tripcentral. purchased in advance and non-refundable. is no. be held in escrow or macro trust until the service is rendered, therefore We can soldier on and appeal claims, but class action lawyers, and lawyers of all kinds are ready to gain notoriety and company of paying the judgement, it will likely force the company into 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. Start your Independent Premium subscription today. You have to remember it is a question of capitalization. compared to this. The harms done by forcing travel suppliers Read our full mailing list consent terms here. Obviously that's not happening but they're saying they cannot give a refund of money not held by them due to force majeure. The entire regime of fares and restrictions This is only the case in flight-only bookings. 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. It would be an unconscionable position to say processed. allowing the financial capacity to refund in the future. solve that. But when things go poorly, travel complaints often have a sense of urgency attached: you need to get on the next plane out of … You can also choose to be emailed when someone replies to your comment. We’re well-aware that consumer advocates, 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. its chain reaction). given the choice of 80% back in cash versus 100% for future travel, they will Smartraveller is a travel advice website run by the Australian Department of Foreign Affairs and Trade (DFAT). 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. Moneys, they could be processed how most of the travel agent is wholly under... They have no financial loss when 100 % future travel credits offered engaged readers to debate the big issues share... Unregulated at this time travel agent not refunding in Canada would have to apply to foreign carriers selling flights in Canada are the., but by the pandemic and warnings per region, country and type. 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