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Virgin Holidays customers whose travel plans were cancelled due to COVID-19 will be getting a refund.
Following an investigation, the Competition and Markets Authority (CMA) has ordered Virgin Holidays to refund £203 million to customers.
COVID-19 Pandemic Cancelled Plans
The CMA had received hundreds of complaints from consumers who claimed they were not getting their money back on holiday packages cancelled in light of the pandemic.
Lynn and Martin Fox remortgaged their home to finance a Florida holiday for themselves and their two children in Florida, according to a BBC report.
But after the trip was cancelled, they say, they had a difficult time getting a refund.
“If only they [Virgin Holidays] would have been honest with us and communicated with us, we would have been happy,” Lynn Fox told the BBC. “If they put a date on the refund, we could have planned. But the phone cut off calls and emails were ignored.”
The Fox family wasn’t the only one to have their Florida holiday ruined.
Hannah Nash said her family paid nearly £7,000 for a Disney World trip that never happened; they also found it difficult to get a refund.
“The stress is making me ill,” Nash reportedly told the BBC. “These are not small amounts for normal people.”
The CMA says even when Virgin Holidays informed its customers a refund was coming, many had to wait a long time — up to 120 days in some cases.
Virgin Holidays has received 53,000 requests for refunds since the beginning of March, according to the CMA.
Virgin Holidays’ Commitment
The CMA says Virgin Holidays has committed to formal commitments, or “undertakings”, to ensure customers receive refunds without long delays.
Holidays that were cancelled before 1 Sept. were to be repaid by 30 October, the CMA said. Holidays cancelled between 1 Sept. and 31 Oct. are to be repaid by 20 Nov.
Customers who cancelled holidays on or after 1 Nov. are to be refunded within 14 days.
If the travel company doesn’t refund customers within those timeframes, the CMA said it will take Virgin Holidays to court.
All Virgin Holidays businesses offering package holidays are included in these commitments, and the company has agreed to report to the CMA regularly on its progress.
“People whose holidays have been cancelled due to coronavirus deserve a prompt and full refund,” CMA Chief Executive Andrea Coscelli said. “Our action means that Virgin Holidays customers should receive all their money back without further delay.”
“We have gradually reduced refund timeframes and are now 98% through the refund queue,” a Virgin Holidays spokesperson told the BBC. “Our focus now is on rebuilding trust with our customers, recognising that it has regrettably taken much longer than normal to process their refunds. We thank them sincerely for their patience throughout.”
Know Your Refund Rights
Customers with package holidays cancelled by the package provider should be issued a refund for the entire package within 14 days, according to the BBC.
People whose flights are cancelled are entitled to receive a full refund within seven days; however, many airlines are reportedly struggling with meeting that deadline.
Customers are entitled to accept or refuse if an airline offers vouchers or rebooking, but it’s important to note the vouchers may no longer be valid if the airline goes out of business.
Those who decide not to go on a future flight that has not been cancelled are not entitled to a refund, according to the BBC. Travel insurance is unlikely to cover customers under these circumstances.
But airlines’ rules vary, and many are waiving fees for customers who want to move to a later flight or decide to take a voucher.
The CMA says it is continuing its investigation into package holidays and how they’re being affected by the pandemic.
“Should we find that any business is not complying with consumer protection law, we won’t hesitate to take action,” Coscelli said.
The CMA has already reportedly issued warnings to additional travel companies, including Sykes Cottages and Vacation Rentals.
Vacation Rentals, which operates Hoseasons and Cottages.com, has agreed to refund customers for trips cancelled due to the pandemic, according to the BBC.
Other countries have been dealing with similar issues.
The Canadian minister of transport on Nov. 8 said federal support for the country’s airlines would depend on the airlines refunding customers whose flights were cancelled because of COVID-19.
Virgin Holidays customers with questions about the company’s refund policy or other concerns can visit its coronavirus FAQ page.
Was your holiday cancelled due to the pandemic? Were you able to get a refund? Tell us about it in the comments section below!
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