After months of lobbying the Government for support, the travel industry has finally been told that the Government have agreed to back Refund Credit Notes (RCNs).
The news comes four months after ABTA first asked the Government to provide clarity for holidaymakers when they asked ministers to confirm that all travellers will have the same financial protection as package holidays.
Transport Minister Grant Shapps confirmed RCNs will be covered by the ATOL scheme, so if a tour operator goes out of business, clients left with credit notes will be refunded from the Air Travel Trust Fund.
The ATOL scheme will be extended to cover RCNs issued from March 10 to September 30 for Covid-19-related cancellations. Refund credit notes for ATOL packages now have the same financial protection as non-flight-based packages with ABTA bonding.
A spokesperson for ABTA said: “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.”
