Which? asked the UK’s 10 biggest package holiday providers and 10 largest airlines to explain their policy on refunds. Not one of the 20 companies Which? contacted was consistently meeting their legal requirements to refund consumers within the statutory timeframe.

The organisation found that several of the largest companies, including TUI, Love Holidays and Virgin Holidays are issuing credit notes for cancelled bookings in the first instance, even when customers have asked for a cash refund. Ryanair is doing the same.

Many more companies are unwilling to give an indication of how long it will take for refunds to be processed, with people likely to be waiting months to get their money back.

Travel companies are entitled to offer alternatives, such as vouchers, to customers for cancelled bookings, but they must also offer the option of a cash refund within 14 days. Increasingly, though, that isn’t happening.

Some of the country’s largest package holiday providers are now refusing to pay back cash to customers and issuing vouchers automatically instead. If you have a package holiday booked with TUI, Love Holidays or Virgin Holidays, you will be given a credit note, whether you want it or not, if they have cancelled your trip due to coronavirus.

Some holiday companies claim to still be offering refunds but say there are delays in returning customer cash. Lastminute and Expedia both claim to still allow cash refunds, but customers are reporting that they haven’t been refunded weeks after making a claim.

Unprecedented levels of demand are another reason commonly given for refund delays. However, Easy Jet Holidays, one of the biggest package holiday providers, told us that, on average, it is processing refunds in under 14 days. Many smaller operators are also still processing refunds on time.

Customers whose flights were with an EU or UK airline, or were due to depart from an EU or UK airport are due a refund for a cancellation within seven days.

Not one of the 10 airlines contacted by Which? said it was meeting this legal requirement. Ryanair, Qantas and Virgin Atlantic are among the airlines issuing credit notes automatically for flights they’ve cancelled.

If the provider cancels your holiday, the package travel regulations mean you are entitled to a refund. Whilst you might be happy with an alternative offered by your travel provider if you want to be refunded this must be processed by the company within 14 days.

Abta and some travel companies are lobbying the government to suspend cash refunds. It wants these replaced with credit notes that can be exchanged for cash at some future date. Which? Is asking for the government to support the travel industry, but believes customers’ right to a cash refund must be upheld.

Rory Boland, editor of Which? Travel, said: “We do not want to see the industry suffer further as a result of this outbreak, but it cannot be on consumers to prop up airlines and travel firms, especially when so many may be in difficult financial situations of their own.

“People need to know that they can trust the travel industry to treat them fairly, so we’ve launched a 10-point plan of what we want to see the travel industry and government doing to protect consumers during this unprecedented crisis.”

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