Major holiday firms have now changed their cancellation and refund policies after the Competition and Markets Authority (CMA) announced a review into the sector.
The investigation comes after the regulator received more than 4,500 complaints about UK tourism and hospitality providers failing to refund holidays cancelled due to Covid-19.
Announcing the review, the CMA’s COVID-19 Taskforce – set up to “monitor market developments” and identify problems facing consumers as a result of the pandemic – said some companies have already volunteered to change their policies.
One of these is Vacation Rentals, whose portfolio includes Hoseasons and Cottages.com. According to reports, the firm has now committed to “offer a full refund to customers who booked holiday homes but could not stay in them due to lockdown restrictions” and “communicate its new policy clearly on its website and via social media”, as well as “provide the CMA with monthly reports on how many refund offers have been made and accepted”.
But the CMA says other holiday lets firms have yet to follow suit.
“The CMA will continue with its inquiries into the holiday accommodation sector, which may ultimately lead to court action against companies which fail to comply,” it said in a statement.
Commenting on the review, Andrea Coscelli, CEO of the CMA, added: “Our COVID-19 Taskforce is working hard to ensure that consumers get what they are entitled to, so it’s good news that Vacation Rentals has agreed to offer people the refunds they are due.
“We know the pandemic is presenting businesses with challenges too, but it’s not right that people are being left hundreds or even thousands of pounds out of pocket – on top of having to sacrifice their holidays. Consumer protection law exists for a reason; businesses must observe the law or face the possibility of enforcement action.”
You can read the CMA’s official stance on cancellations and refunds here.
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