Hundreds of holidaymakers whose trips have been cancelled because of the coronavirus crisis have told The Independent they have been refused cash refunds. 

When the Foreign Office (FCO) warned against any travel abroad until 16 April, anyone with a package holiday became entitled to a full cash refund under the Package Travel Regulations. 

The travel firm can offer either an alternative departure or a credit note. But it is the customer’s choice: if they ask for their money back, it must be provided within two weeks.

But in the unprecedented travel crisis, many firms – large and small – appear to be failing to provide a full picture of options.

Graham Berry, who had a booking with Virgin Holidays for departure on 2 April, requested a refund after the trip was cancelled.

But he was told,: “Should you just wish for the holiday to be cancelled we can do this for you and send a cancellation notification and you would need to seek the cost of the holiday back through your travel insurance company.”

Any travel insurer would immediately reject such a claim, as it is the tour operator’s responsibility to provide a refund.

Mr Berry was told: “We are following the advice from the FCO along with all other travel providers as you can appreciate all of our suppliers have also required payment.”

However, this interaction went against Virgin Holidays’ policy.

A spokesperson for the travel company said: “Virgin Holidays acknowledges that all customers are entitled to a refund and our teams can help with this.

“We are updating our information on our website to make sure this is incredibly clear, and we will also ensure that our customer teams are also advised and fully trained on the changing policies we have put in place, to deal with the continuing travel restrictions that we’re faced with.”

But other operators are continuing to insist they do not need to issue refunds.​ The Independent has seen many examples of refunds either not being offered or flatly refused.

Abta, the travel association, is asking for support from the travelling public, saying: “If possible, postpone your holiday or travel arrangements, don’t cancel – this will mean you have a holiday to look forward to in the future, and it will help your travel provider maintain its cash flow through the short-term challenges. 

“If you are not able to postpone, they may offer you a refund credit voucher instead of a cash refund. Abta is in urgent talks with the government to ensure that these credit arrangements have the full cover of financial protection.

“If you have a travel booking for later in the year, please be patient. The situation is changing rapidly, and travel restrictions are currently only in place until mid-April.  You may incur cancellation charges or lose your deposit if you make a hasty decision.

“Nobody knows for sure how long the current coronavirus pandemic will last, but we know that we will come out of the other side and we need to ensure that when we do, holidaymakers are still able to book and take their holidays and that there is healthy and competitive travel industry to support them.”

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