The CMA has warned package holiday companies to respect the refund rights of holidaymakers ahead of the summer period

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The CMA has warned package holiday companies to respect the refund rights of holidaymakers ahead of the summer period.

The Competition and Markets Authority (CMA) has published a further open letter to the sector and has also sent it directly to the 100 package travel firms with the most complaints about them. The letter reminds the firms of their legal obligations and of the need to ensure refund options are clear and accessible.

As a result of CMA action, TUI UK has now given a formal commitment – known as ‘undertakings’ – to provide clearer information on refunds upfront to customers whose holidays have been cancelled due to coronavirus (COVID-19). The company had already taken steps to meet concerns raised by the CMA, by improving the information it provides to customers and making it easier for people to get their money back.

Since March 2020, the CMA has received over 23,000 complaints from consumers about refund issues relating to package holidays that could not go ahead due to the pandemic. In acknowledgement of this, today’s letter to the package travel sector sets out what businesses should provide and what customers can expect, including:

Andrea Coscelli, Chief Executive of the CMA, said:

Today’s letter and the commitments from TUI follow action the CMA has already taken against 5 major package travel companies, which have provided more than £200 million in refunds for customers.

Further information on this case can be found on the COVID-19 cancellations: package holidays web page.

Notes to Editors