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The
REFUND CREDIT NOTES
6things you must do
to comply with
ABTAs guidelines
The COVID-19 pandemic continues
to cause unprecedented challenges
for the travel sector.
The UK Foreign and
Commonwealth Office (FCO)
advises against all non-essential
global travel, giving customers the
right to cancel forthcoming
departures.
Under the Package Travel
Regulations, package organisers
are legally obliged to offer a
suitable alternative, or give a cash
refund within 14 days of
cancellation.
14
The scale of refund requests means
package organisers do not have the
cash resources to pay refunds in
such large amounts.
In many cases, customer cash is
trapped further up the supply chain
with airlines and ground suppliers.
Agent Tour
Operator
Many suppliers, particularly
airlines, are issuing credit notes
rather than cash refunds.
ABTA are leading lobbying efforts
requesting the UK Government
change the Package Travel
Regulations, to temporarily relax
the 14 day refund obligation.
Meanwhile, ABTA has also issued
guidance on a Refund Credit Note
scheme to help operators retain
cash, while treating customers as
fairly as possible.
For now, package organisers
remain legally obliged to refund
within 14 days. However, complying
with ABTA guidelines should
satisfy the regulators, reducing the
risk of enforcement action.
1. The document must be called a
Refund Credit Note and not a
voucher to ensure it remains
protected under the ATOL scheme.
Vouchers are specifically excluded
from ATOL protection.
2. The Refund Credit Note must
reference the original protected
booking number.
123456
3. A copy of the cancelled booking
confirmation invoice and, where
appropriate, the original ATOL
Certificate must also be attached to
the Refund Credit Note.
4. The value of the Refund Credit
Note must equal the cash paid by
the customer. Any additional
rebooking incentives should be
documented separately and would
not be protected.
5. Your Refund Credit Notes must
have expiry dates which fall within
the expiry period of your financial
protection arrangements. They
should not go beyond 31 March
2021.
31 Mar 21
6. Your customer must retain the
right to an eventual cash refund
when the Refund Credit Note
expires, if no alternative booking is
agreed.
THE TRAVEL TRADE CONSULTANCY
www.thettc.co.uk
info@thettc.co.uk
Linkedin/company/travel-trade-consultancy
Looking for more guidance on
Covid-19?
See our website or follow us on
LinkedIn for up to date information

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Refund credit notes

  • 1. The REFUND CREDIT NOTES 6things you must do to comply with ABTAs guidelines
  • 2. The COVID-19 pandemic continues to cause unprecedented challenges for the travel sector.
  • 3. The UK Foreign and Commonwealth Office (FCO) advises against all non-essential global travel, giving customers the right to cancel forthcoming departures.
  • 4. Under the Package Travel Regulations, package organisers are legally obliged to offer a suitable alternative, or give a cash refund within 14 days of cancellation. 14
  • 5. The scale of refund requests means package organisers do not have the cash resources to pay refunds in such large amounts.
  • 6. In many cases, customer cash is trapped further up the supply chain with airlines and ground suppliers. Agent Tour Operator
  • 7. Many suppliers, particularly airlines, are issuing credit notes rather than cash refunds.
  • 8. ABTA are leading lobbying efforts requesting the UK Government change the Package Travel Regulations, to temporarily relax the 14 day refund obligation.
  • 9. Meanwhile, ABTA has also issued guidance on a Refund Credit Note scheme to help operators retain cash, while treating customers as fairly as possible.
  • 10. For now, package organisers remain legally obliged to refund within 14 days. However, complying with ABTA guidelines should satisfy the regulators, reducing the risk of enforcement action.
  • 11. 1. The document must be called a Refund Credit Note and not a voucher to ensure it remains protected under the ATOL scheme. Vouchers are specifically excluded from ATOL protection.
  • 12. 2. The Refund Credit Note must reference the original protected booking number. 123456
  • 13. 3. A copy of the cancelled booking confirmation invoice and, where appropriate, the original ATOL Certificate must also be attached to the Refund Credit Note.
  • 14. 4. The value of the Refund Credit Note must equal the cash paid by the customer. Any additional rebooking incentives should be documented separately and would not be protected.
  • 15. 5. Your Refund Credit Notes must have expiry dates which fall within the expiry period of your financial protection arrangements. They should not go beyond 31 March 2021. 31 Mar 21
  • 16. 6. Your customer must retain the right to an eventual cash refund when the Refund Credit Note expires, if no alternative booking is agreed.
  • 17. THE TRAVEL TRADE CONSULTANCY www.thettc.co.uk info@thettc.co.uk Linkedin/company/travel-trade-consultancy Looking for more guidance on Covid-19? See our website or follow us on LinkedIn for up to date information