UK regulator pushes TUI over COVID-19 cancelled holiday refunds

© Reuters. FILE PHOTO: Logo of Germany-based travel company TUI


LONDON (Reuters) – Britain’s competition regulator said TUI UK (L:) (DE:) will refund customers for COVID-19 cancelled holidays by Sept. 30, after it investigated consumer complaints that travel companies were dragging their heels over returning cash.

Under consumer protection law, holiday firms must refund customers for cancelled holidays within 14 days, but during the pandemic the high volume of refunds and strained company finances slowed the return of monies owed.

The UK’s Competition and Markets Authority said on Wednesday that it investigated TUI UK, part of Germany-based TUI, which is the world’s largest holiday group, following thousands of complaints from customers waiting more than 14 days for refunds.

Consumer group Which? said that holidaymakers are still owed millions of pounds for cancelled holidays and flights, and the CMA said on Wednesday it had written to over 100 package holiday businesses to remind them of their obligations on refunds.

TUI UK has now agreed to pay outstanding refund requests by the end of this month and will also contact customers who have been issued a credit note to advise them that they can convert it to a refund if they want.

The refunds will be a new drain on TUI’s finances.

The cash-strapped company has received emergency loans from the German government, and said it is considering raising new equity from shareholders or selling off parts of the business to reduce debt taken on to survive the coronavirus pandemic.

READ  U.S. to Slap Tariffs on EU, Jokowi Vows Reform: Eco Day

The CMA also said that TUI will report to it regularly over the coming year on the time it takes to refund customers.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Please enter your comment!
Please enter your name here