According to John de Vial, ABTA’s Director of Financial Protection and Financial Services, package travel has been excluded from an investigation by the Competition and Markets Authority (CMA) into consumer complaints about refunds.
The CMA has instructed its Covid-19 Taskforce to look into “increasing numbers of complaints in relation to cancellations and refunds”, including “holiday accommodation” during the pandemic.
John de Vial, ABTA’s Director of Financial Protection and Financial Services, said: “With the CMA inquiry, it’s interesting what they have identified and are investigating – weddings, events, concerts, theatre and accommodation websites.
“It’s in these areas where traders are denying the right to a refund because of the virus – they are saying there’s no refund due at all.
“They are not investigating the package sector at all, and that’s been confirmed to both us and the CAA.
“They can see that there are difficulties and delays with refunds to consumers. But we as regulators and quasi-regulators have said that the right of refund must be protected.
“Insolvency protection is also there, so customers will still get their money back. They are not going to include package travel in the investigation.”
ABTA is continuing to lobby the UK government for a “temporary” amendment to the Package Travel Regulations as many travel companies struggle to make refunds to customers within the statutory 14-day period.
