ABTA chief executive Mark Tanzer gave evidence to the House of Commons Transport Committee on the impact of the COVID-19 pandemic on the UK transport sector, and how the government can support travel agents and tour operators
The areas Mr Tanzer highlighted included: asking the government to provide guidance and clarity on refunds for package holidays; reviewing furloughing rules to give travel businesses more flexibility; and working closely with the ABI and insurers to ensure travellers can obtain adequate travel insurance when FCO restrictions are lifted.
In regard to package holiday refunds, Mr Tanzer called on the government to publicly confirm what the CAA has stated privately, that refund credit notes covering ATOL package holidays are financially protected. He added that this would help boost consumer confidence.
?In a bid to bring some order to an exceptionally difficult situation while ensuring that customers keep their right to a refund and financial protection following cancellation of a package holiday, ABTA has developed guidance for Members who may need more time to process refunds. This aligns with the Competition and Markets Authority?s position on preserving the customer right to a due refund, while recognising the fact that refunds may not be able to be paid within the statutory period," Mr Tanzer told the committee.
?If the Government is unable or unwilling to act or provide guidance on the 14 day window for refunds, then it will need to explore other options or face the inevitable failure of these businesses. An industry-wide collapse of travel agents and tour operators would be the worst possible outcome for these businesses and their staff, for their customers who would have to wait many months for refunds and for the UK taxpayer who would end up footing the bill for the ATOL scheme.," he added.
In calling for a review on furlough rules, whereby millions of employees across the UK are currently not working while having 80% of their salary paid by the government, Mr Tanzer would like to see "greater flexibility". He proposed travel businesses being allowed "a degree of flexibility" so that either a part-time return to work can be allowed or for some tasks to be undertaken without the full loss of government-funded salary support.
It is expected that Chancellor Rishi Sunak will announce plans to wind down the furlough scheme, which is scheduled to end on June 30. However, at this stage, it is uncertain as to whether this will involve a complete cessation of the scheme after June or whether there will be a gradual process implemented.
Image credit: UK Parliament/Flickr
