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Unreasonable consumers could kill countless travel companies and put thousands out of work

Coronavirus represents an existential threat to many travel companies - getty
Coronavirus represents an existential threat to many travel companies - getty

I never thought I’d write these words, but I think the time has come for consumers to be flexible. To put our rights into a new context and start thinking about the implications of what is currently happening to the travel industry. I say this having spent much of my working life holding airlines, tour operators and other holiday companies to account, exposing shoddy, sometimes dishonest service, and campaigning for better consumer rights and protections.

But during that time I’ve never seen anything quite like the impact of the Covid-19 pandemic. And I’m not talking about the obvious short-term disruption. Because we plan, book and pay for travel often months in advance, the effects of the virus on tourism will last for the whole of 2020 and probably much longer.

It is a seismic shock to tone of the world’s biggest industries, and an acute, existential threat to many of the companies that operate within it. Sure. Slowly and eventually, life will get back to normal. But we don’t want to delay that resumption by seeing whole chunks of the industry collapse.

Let’s look at the grim reality from the point of view of an airline, tour operator, hotel or cruise company, or one of the many, many businesses that form the backbone of that industry. They already work on tight margins and they depend for their profits (and therefore their survival) on a steady turn over of bookings. These bring funds in advance for some - airlines and tour operators, for example - and in arrears for the agents who depend on commissions, or hotels which are often paid only when guests have left.

But instead of taking bookings, checking in guests and organising travel arrangements, all these companies are now having to spend all their efforts handing money back. Not only does this fundamentally threaten their future, none of them - especially those which were built to trade online - have enough staff to cope with a sudden and extreme shift in the way they have to work. Those employees they do have are stressed, in fear of their jobs and livelihoods. What’s more, as the virus spreads, more and more of them are getting ill leaving companies even more short-staffed.

They are also having to deal with anxious, impatient customers desperate to get their money back. And I know, from the tone of some of those who have contacted me, that not all these customers are understanding nor even reasonable in their expectations. I suppose it is not surprising. We are all stressed and worried about the financial consequences of the virus. But I have been mostly impressed by the efforts of the travel industry to mitigate the problem. Most are doing their level best to help. Many are doing their best to be flexible.

Strictly speaking, customers are usually entitled to a cash refund in such circumstances. But many companies, in their struggle to survive, are trying to persuade people to accept a postponement - rebooking for a later date - or an offer of a credit for a future holiday. So, bearing the extremity of the situation in mind, I’ve changed the advice I give to those whose trips are cancelled and suggested that - if at all possible - they forbear from demanding a refund and accept an alternative offer. The more people who feel able to do this, the more travel companies will survive long enough to arrange our holidays in future. And you don't have to worry about losing your money - in the vast majority of cases it will be protected because your holiday was paid for with a credit card booking or a financial bonding arrangement such as the Atol.

This week the trade association Abta made a plea for help and flexibility in the legal situation. It asked the Government to take two immediate steps to help the industry survive. First to allow companies to refund customers over a defined period, during which their payment is protected. And second, to establish an emergency fund to reimburse customers’ money where travel companies cannot recoup it from their suppliers. Only with these interventions, says Abta, “will we be able to continue to protect the customer interests, and avoid a short term run on travel companies which will trigger failures and delay refunds getting to customers.”

It’s a cry for help. If we want to carry on travelling after Covid-19, we should all heed it.