Few of us probably escaped the dreaded holiday cancellation in 2020, and international travel restrictions remain in the UK but what can we do about a cancelled holiday?
So, what can you do if your annual getaway was cancelled? Can you claim a refund or compensation? Read on to find out where you’re eligible to get your money back.
What Type of Holiday Did You Book?
Package Holidays. If you booked a package holiday and the travel company cancelled before you set off, you’re entitled to a full refund within 14 days under the Package Travel and Linked Travel Arrangements Regulations 2018. This type of holiday offers the highest level of protection. You can also claim a full refund if the travel operator went out of business before your holiday. Although the regulations apply only to package holidays sold in the EU, the government has confirmed that UK citizens will continue to benefit from financial and legal protection post-Brexit.
Linked Travel Arrangements. Customers who book a “linked travel arrangement” are only entitled to financial protection (not legal). The degree of financial protection is lower than for those who book a package holiday but it does cover your costs if the company you booked the linked travel arrangements with goes insolvent.
Individual Bookings. If you booked the different elements of your holiday separately — flights, accommodation etc. — you will need to check if you’re covered via other means, for example, credit card protection or travel insurance.
Coronavirus and Holiday Cancellations
If you paid for your holiday in advance and it was subsequently cancelled due to COVID-19, you will be able to claim a refund in most circumstances. However, it may take a while to settle your cancelled holiday.
Due to the record number of cancelled holidays that many companies are currently processing, there may be a backlog to clear before they can get to your claim. Keep chasing. The more established travel agencies should have a robust claims management procedure in place to help them manage a large volume of claims efficiently. But in these unprecedented times, you may still have to wait a little longer than usual to receive a refund.
If the company provides a voucher or credit to use against future bookings, you have the right to insist on a cash refund. This is generally preferable because vouchers commit you to rebook with the same company and your needs may change. Also, vouchers generally have an expiry date, making them a less flexible option than a cash refund.
Can You Claim Compensation from a Credit Card Provider?
If you didn’t book a package holiday and are struggling to get a refund for all elements of your holiday, it might be possible to claim compensation from your credit card provider.
Section 75 of the Consumer Credit Act 1974 applies to holiday or flight bookings between £100 and £30,000, whether you paid the full balance or just a deposit. You can claim whether the holiday was cancelled or the company went bust and you may be eligible for a refund of:
- The cost of flights
- The cost of your holiday
- Additional expenses, such as the cost of extra hotel nights while you wait for a new flight.
Not everything will be covered, for example, if you didn’t pay the travel provider directly with your credit card or if you bought a flight only deal from a third party. Contact your credit card provider to find out what you are eligible to claim.
How to Make a Claim
Once you understand what type of holiday you booked, what cover you may be eligible for and who to claim against, it’s time to write to the relevant company or companies.
- Gather all relevant documentation and proof of payment. This might include bank statements and booking confirmations.
- Write to the relevant company and department. For example, if you booked a package holiday, this will be the tour operator’s customer service department. Add as much detail as possible — your customer reference number, when the holiday was cancelled and why, copies of receipts etc.
- Contact the Association of British Travel Agents (ABTA). If you don’t get a response or you’re unhappy with the outcome of your claim, try contacting ABTA to seek a resolution. This is only an option if the company you booked with is a member of the organisation.
- Take your case to the small claims court. This can be an expensive and time-consuming process with no guarantee of success, so should be used as a last resort if all other recourse to action fails.
If your cancelled holiday was due to the coronavirus pandemic, you stand a good chance of getting a refund. If there was another reason for the cancellation, your chances of success will depend on the type of holiday you booked and how you paid for it.
Do your research and, if necessary, seek help from an organisation such as the Citizens Advice Bureau. Ensure that you have all the relevant information to hand and include as much detail in your claim as possible for the best chance of achieving a swift and satisfactory resolution.
