Holidaymakers who have actually accepted refund credits note for cancelled bundle holidays will get their money back if travel firms goes bust, the federal government has actually stated.

Previously, there have actually been doubts regarding whether customers’ refund credit notes would be secured if the providing travel business collapsed prior to they might be invested.

However the federal government has actually now stated it will secure refund credit notes provided in between 10 March 2020 and 30 September 2020 for ATOL-protected reservations.

The plan is generally utilized to stop bundle vacation clients being stranded abroad or losing money from future reservations when operators collapse, as occurred with Thomas Cook in September 2019.

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Customer group Which? has actually been encouraging people to decline refund credit notes and “insist on a refund” due to the fact that of issues about them being useless if the providing company goes under.

Transportation Secretary Grant Shapps stated: “We wish to send out a clear message to guests that they can schedule their summertime holidays with self-confidence, which is why we’re actioning in to secure refund credit notes provided as a result of COVID-19 cancellations.

“This is not only good news for anyone looking to get away for a break in the sun, but also for the aviation and travel sector which has been hit hard by the pandemic.”

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The Civil Air Travel Authority (CAA) stated the Department for Transportation had actually supplied “much-needed clarity” by validating that such cases will be covered by the ATOL plan.”

Which? Travel editor Rory Boland stated the information will be “a big relief” to clients who have actually accepted refund credit notes.

He added: “This is a favorable action towards bring back rely on the travel market.”

Some travel firms are using coupons instead of refund credit notes.

Although these are typically worth more than the original reservation, to incentivise clients not to demand money, the CAA stated they are not ATOL secured.

The federal government is the financial backer for the ATOL plan, which is run by the CAA.

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