ABTA has welcomed the announcements from the Department for Transport and the CAA that the Government will extend ATOL protection for Refund Credit Notes (RCNs) saying that the move “gives reassurance to consumers and supports the travel industry at an especially difficult time”.
An ABTA spokesperson said: “ABTA welcomes the Government’s action to back Refund Credit Notes through the ATOL scheme; this gives reassurance to consumers and supports the travel industry at an especially difficult time. This development verifies that the ATOL scheme provides protection for cancelled holidays when a refund remains outstanding in the event of a travel organiser’s failure. This is the same for non-flight based package travel with ABTA bonding under the Package Travel Regulations. This assurance enables consumers to hold and rely on Refund Credit Notes with confidence, before rebooking a much needed holiday.
“The move will particularly help tour operators that have not been able to immediately refund customers for cancelled package holidays because they have had to wait for money back from airlines and other suppliers.
“We now need the Government to listen to industry calls for tailored support to protect businesses and jobs until its recovery can properly take effect.”
