Holiday firms demand cash for trips that look set to be cancelled

Anxious holidaymakers are being ‘bullied’ into handing over thousands of pounds for trips that are unlikely to go ahead.

Countless holidays have been cancelled since the Foreign Office advised against all but essential travel in March. 

Health Secretary Matt Hancock said it was ‘just a reality of life’ that breaks abroad would be off limits after the Government announced a 14-day quarantine for all international arrivals into Britain.

Asked whether ‘summer was cancelled’, Mr Hancock told ITV’s This Morning: ‘I think that’s likely to be the case. I think social distancing of some kind is going to continue and I think the conclusion from that is that it’s unlikely big, lavish international holidays are going to be possible for this summer. I think that’s just a reality of life.’

He added the Government was seeking ‘to reopen some hospitality’ for staycations from early July, but that there were no guarantees.

With the two-week quarantine period making it impractical for holidaymakers to go abroad anywhere, it is highly likely that many families will be unable to go abroad for the foreseeable future.

Despite this, scores of readers have told Money Mail they are still being asked to pay more money for trips they are certain they won’t be able to take.

Many travel firms take a deposit upfront and then ask for the remaining balance nearer departure dates.

If customers choose to cancel and not pay the balance, they stand to lose their deposit. It means that disappointed holidaymakers, including many who have lost their jobs or who are vulnerable to the virus, are now faced with a difficult decision.

They can refuse to pay and sacrifice their deposit, plus fork out to cover a cancellation fee. Or they can pay the balance and hope they can get a refund when the trip is cancelled.

The latest extraordinary commitment by the government came as:

  • The UK announced 425 more coronavirus victims in hospitals, taking the official death toll to 32,490 – but separate statistics suggest the true number of fatalities could be closer to 45,000;
  • Health Secretary Matt Hancock has warned that people are unlikely to be able to go on foreign holidays this summer. Asked whether ‘summer was cancelled’, Mr Hancock told ITV’s This Morning: ‘I think that’s likely to be the case;
  • Shadow chancellor Annaliese Dodds has indicated she might not send son Freddie, six, back to school next month, claiming the Government has not produced enough evidence it is safe;
  • Commuters have been urged to walk the last mile of their journeys, wear a mask and face away from each other, as the government mounts a push to get more workers back in action; 

Grounded: Pensioners Avril and Peter Brewer, from Chelmsford, Essex, had planned to treat their son, his wife and their two young children to a once-in-a-lifetime holiday to Florida

Virgin boss Richard Branson poses with models. The firm confirmed that those travelling between June 1 and September 30 may now rebook holidays for free until December 31,

Virgin boss Richard Branson poses with models. The firm confirmed that those travelling between June 1 and September 30 may now rebook holidays for free until December 31,

However, as Money Mail exposed last month, customers are routinely being refused a cash refund and instead forced to accept vouchers or credit notes for cancelled holidays.

Pensioners Avril and Peter Brewer, from Chelmsford, Essex, had planned to treat their son, his wife and their two young children to a once-in-a-lifetime holiday to Orlando, Florida, in August. 

They paid £1,075 for a package holiday with Richard Branson’s Virgin Holidays last April, which included flights, a hotel, car hire and tickets to Disney World.

The remaining £13,091 balance is due on May 20, but the family wants to rebook for August next year instead.

However, Avril, 71, a former office administrator, says she is unable to reach Virgin as the customer service helpline will deal only with customers travelling within the next 72 hours.

And, according to the firm’s terms and conditions, if the balance is not paid in full and on time, it reserves the right to treat the booking as cancelled, which means charges apply and the deposit will be withheld.

Avril says: ‘We just don’t know what to do. We do not want to pay the £13,091 balance as we don’t know what will happen to Virgin or our money. But we cannot get through to anyone. 

Speaking on This Morning, Health Secretary Matt Hancock poured cold water over some Britons' plans to fly abroad this summer, calling the cancellations of summer plans 'just a reality of life'

Speaking on This Morning, Health Secretary Matt Hancock poured cold water over some Britons’ plans to fly abroad this summer, calling the cancellations of summer plans ‘just a reality of life’

Off limits: Hopes of traditional family breaks have been dashed for thousands of sunseekers and adventurers. Here are the restrictions the top destinations have put in place

Off limits: Hopes of traditional family breaks have been dashed for thousands of sunseekers and adventurers. Here are the restrictions the top destinations have put in place

‘Virgin is letting its customers down and we are disgusted.’ 

Dianne McLaren and her partner Phil Hudson are also struggling to get hold of Virgin Holidays. The couple, from Harrogate, had paid a £985 deposit in November towards a coach trip around the U.S. and Canada, planned for August.

The remaining £4,037 is due on May 23. Dianne, 62, wants to postpone, but the firm will not answer her calls or emails

She says: ‘We are in a dilemma. We do not want to pay the balance because I am worried we stand to lose £5,000.

‘But if we do not pay, we lose the deposit plus cancellation fees. And we are not getting any help from Virgin.’

Virgin Atlantic announces 2021 flight programme following Gatwick closure

Virgin Atlantic has announced its programme for summer 2021 following the closure of its Gatwick base.

The airline will operate flights from Heathrow, Manchester, Glasgow and Belfast.

It expects to ‘steadily increase’ flights in the second half of this year, before a ‘further, gradual recovery’ in 2021.

Virgin Atlantic will fly to 24 destinations next summer, using only twin-engine aircraft.

The Heathrow to Tel Aviv service will increase to twice per day.

The airline announced last week that it will not resume Gatwick flights, will reduce its workforce by 3,150 people and will not return to using its seven Boeing 747-400 aircraft, which have four engines. 

The Competition and Markets Authority launched an investigation into unfair cancellation policies last month. 

As part of this it said it would be considering complaints about holiday providers which fail to give refunds to customers who are forced to cancel trips due to the restrictions that apply during lockdown.

However, this won’t help people who are being asked for money now.

Whether or not you are entitled to a refund of your deposit if you cancel will come down to the terms and conditions of your contract.

Martyn James, of online dispute service Resolver, says: ‘It’s clear that some holidaymakers are being bullied into paying in full for holidays that might not even go ahead. 

This is concerning in light of the statement from the Competition and Markets Authority about refunds and cancellations.’

He adds that the best thing holidaymakers can do is to ask for a delay to the date by which you need to make your final payment. 

Or find out if the firm will consider allowing you to rebook for later. If it says you will lose your deposit if you do not pay the balance in full, ask for this in writing.

Independent travel expert Frank Brehany says that if you have booked a package holiday you have additional rights under the UK Package Travel Regulations.

You should be able to claim your money back if the holiday is cancelled due to unavoidable or extraordinary circumstances, including ‘significant risk to human health, such as the outbreak of a serious disease at the travel destination’, explains Mr Brehany.

Virgin Holidays has confirmed that those travelling between June 1 and September 30 may now rebook holidays for free until December 31, deferring the balance payment due date.

Those with upcoming balances to settle will be contacted directly.

A spokesman says Virgin is doing its best to support customers, but that it must work through requests in order of departure date. 

New Ryanair flights ‘a refund ruse’

Ryanair was last night accused of cynically avoiding a multi-million pound bill for refunds by announcing plans to operate 1,000 flights a day this summer.

The budget carrier plans to restore 40 per cent of its flights from July 1, despite indefinite travel restrictions and warnings that summer holidays are effectively cancelled.

Chief executive Eddie Wilson boasted the flights would ‘restart Europe’s tourism industry’. Ryanair said passengers will have to ask permission to use the lavatory under strict new social distancing rules on flights this summer.

Ryanair has announced that 40 per cent of its normal flight schedules will be restored from July 1 (stock photo)

Ryanair has announced that 40 per cent of its normal flight schedules will be restored from July 1 (stock photo)

Travellers will also have to pass temperature checks before boarding and wear face masks or coverings.

The airline will not leave middle seats empty after boss Michael O’Leary described the proposal as ‘idiotic’ and ‘hopelessly ineffective’.

But consumer groups said the move would deny passengers their right to a refund – while allowing Ryanair to keep millions of pounds it would otherwise have to pay out.

Under EU laws, passengers can only get a refund if their flight is cancelled. Otherwise, they face losing money or settling for a time-limited voucher towards a future flight. Airlines face a £7billion bill for refunds, and Ryanair alone faces a backlog of 25million claims since March.

The announcement by Ryanair caused surprise a day after the Government confirmed plans for a 14-day quarantine of all UK arrivals. Even if flights do run this summer, the Foreign Office is advising against all but essential global travel.

Rory Boland, editor of Which? Travel, said: ‘Expanding flight schedules now is likely to leave many families, who booked summer holidays months ago, with expensive flights they can’t take and no way to get their money back.

‘Even if these flights are cancelled, customers face a fight for their money from an airline that has already been breaking the law by delaying refunds for customers.

‘The aviation regulator and Government must stand up for passengers’ rights and start taking action against any airlines that are flouting the law around refunds.’

Ryanair declined to comment.

Skeleton schedule: The routes available with Ryanair up until May 28

Skeleton schedule: The routes available with Ryanair up until May 28 

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