APRIL 17, 2020

CORONAVIRUS CRISIS ADVICE REFUND NOTES: Abta’s Guidance Abta’s updated guidance on Refund Credit Notes spells out RCNs “allow the customer to amend their holiday for a later clearly how to deal with refunds for bookings cancelled due to date . . . under the same package travel contract as the original coronavirus travel restrictions. booking and therefore retain the protections of the PTRs”. It notes many businesses “do not have the to They are not the same as holiday vouchers, which “are not immediately provide refunds” as required by the Package generally protected by Abta or under the Atol scheme”. Travel Regulations (PTRs). The guidance provides standardised rules on issuing RCNs But Abta believes Refund Credit Notes (RCNs), correctly since if “not done right, travellers lose protections”. issued, can “help operators and agents remain viable while Abta confirms it will protect RCNs for bookings originally honouring their obligation to refund customers”. protected under the Abta scheme but affected by Covid-19, The guidance confirms Atol-protected bookings and Abta- saying: “This protection will last for the period of the financial- protected holidays will remain financially protected and it protection arrangements in place for individual members, extends the expiry dates of RCNs – when cash refunds fall due driven by the expiry period of the bonds [they provide].” if no holiday has been taken – from July 31 to early 2021 for The guidance also confirms: “Refunds for Atol-protected most Abta members. bookings are covered.”

Issuing Refund Credit Notes Refund Credit Note expiry

A RCN must: The expiry date must be within the period that financial l Be equal to the amount paid for the original booking, protection arrangements are in place. or less where a part refund has been paid. For Abta members... l Still to renew bonds for March 2020, the expiry date l Exclude any rebooking incentive, which must be remains July 31, 2020. documented separately and the consumer made l Due to renew bonds in September 2020, it is aware it is not covered by financial protection. January 31, 2021. l Who renewed their in March 2020, it is l Identify the original booking reference and, where March 31, 2021. appropriate, Atol Certificate reference number. Organisers using financial other than Abta’s must seek approval from the relevant provider. l Be issued within 14 days and include the of a Businesses must state how the protection is provided refund, albeit this is delayed. and the period of validity, and notify Abta they are l Contain an expiry date (see box, right). The customer issuing RCNs. can use the credit note to make alternative arrangements The guidance includes wording that must be included in or seek a cash refund by this date. a Refund Credit Note. Abta notes it will review and amend the guidance “in the event the Package Travel Regulations l Tell the customer to retain all booking documentation are amended temporarily” by the government. Abta and proofs of payment. continues to lobby hard for this.

Briefing frontline staff What to tell customers: to rebook by then. If you do not want a different travel service or can’t decide The Abta guidance includes briefing Why a Refund Credit Note? you will receive a full refund. This must notes for frontline staff. It notes: “Refund Credit Notes are being used in be before the expiry date.” response to the coronavirus crisis because l “The RCN must be equal to the travel companies can’t provide cash Is the RCN protected? amount paid by the customer.” refunds immediately to all customers. “Refund Credit Notes provide evidence l “It must clearly identify the original of ongoing protection against the booking, with booking details and “If you accept a Refund Credit Note, insolvency of the travel organiser.” booking reference [and] customers you can rearrange and amend your should be told to retain all previous booking for a future date.” The guidance is available to Abta members booking documentation.” in the member zone at www.abta.com l “Organisers may offer an incentive How long does the RCN last? for customers to rebook but that is not “The Refund Credit Note will have an financially protected.” expiry date. You should use the RCN

This guidance is an abbreviation of Abta guidance, which should be referred to in full. Travel Weekly accepts no liability for consequences attributed to this guidance. © Travel Weekly Group Ltd 2020