A travel trade association is calling on the government to allow companies to offer credit notes instead of refunds for holidays cancelled due to coronavirus.
Under EU law, travel companies must refund customers within 14 days if their holiday is cancelled. However it is now proposed that credit notes be offered as a “short-term alternative” to cash refunds because of the deluge of claims caused by the pandemic.
It comes after the FCO updated its warning, advising against all non-essential travel, from 30 days to an indefinite period.
Many travel firms will be unable to survive the crisis if they are forced to pay cash refunds immediately, say the Association of British Travel Agents (Abta).