Ryanair and British Airways have finished at the bottom of Which?’s annual survey of short-haul airlines, with both companies panned for providing poor customer service to those with disrupted flights during the pandemic.
The consumer champion surveyed more than 1,300 passengers for their experiences of flying with short-haul airlines in areas such as boarding, cabin cleanliness, customer service and value for money since November 2019.
In a second part of the survey, Which? asked more than 1,100 passengers whose flights were disrupted how satisfied they were with how their airline handled the issue. The actions of some airlines – delaying or denying refunds for flights cancelled, or which passengers could not take, due to Covid – were reflected in these results.
Budget carrier Ryanair received an overall customer score of 55 per cent and a lamentable 47 per cent in the refund satisfaction category, with one in five customers telling Which? it took them more than a month to get a refund.
One customer said: “Ryanair is the most awkward airline to deal with that I have ever come across. It seems to be proud of being difficult.”
Themes that have appeared time and again – making Ryanair a fixture in the bottom three of Which?’s airline survey for more than a decade – were also evident, with another passenger adding: “Total lack of transparency about costs, and treating passengers like cattle to be squeezed for the last penny.”
When asked, ‘Is there an airline you would never fly with?’, three-quarters (74%) named Ryanair. Ryanair scored no better than two stars for all the measures in the main customer satisfaction survey – apart from value for money, where it scored three stars.
BA was second from bottom with a customer score of 63 per cent – just behind TUI Airways, but with a much lower refund satisfaction score.
Passengers reported spending hours on hold only to be hung up on, or passed endlessly between different departments. This disappointing customer service, along with two-star ratings for food and drink, seat comfort and value for money, led one passenger to describe BA as ‘a budget style airline at premium prices’.
However, BA’s cabins ranked as joint cleanest alongside KLM and Jet2.
Jet2 was top of the table and earned a Which? Recommended Provider endorsement.
Its record on delivering refunds was the best: more than eight in 10 (84%) respondents were satisfied with the outcome when their flight was disrupted because of Covid, and throughout the pandemic, most passengers have received a resolution in two weeks.
Nine in 10 Jet2 customers told Which? they got a full refund, rather than having a voucher foisted upon them.
Its Covid flexibility policy is one of the best, allowing customers to make fee-free changes for most pandemic-related disruption, including lockdowns, quarantines and changing FCDO advice.
One Which? survey respondent said: “The pandemic has seen Jet2 shine. Its standard of customer care exceeds that of any other low-cost airline.”
Rory Boland, Editor of Which? Travel, said:“Ryanair’s consistently terrible customer service has made it a fixture among the worst performers in our surveys for many years – but the airline plumbed new depths with its handling of Covid refunds.
“BA’s reputation also deservedly took a battering when it took a hard line on refunds for passengers who could not travel because they followed government health guidance.
“Many passengers will not forget how they were treated by companies during the pandemic. Covid could still cause disruption to international travel, so we would advise travellers to book with operators that have flexible booking policies and a record of treating their customers fairly.”
With hopes of a return to holidays abroad within weeks, some package providers that broke the law last year are still misleading customers over their right to a refund and other financial protections, according to a new investigation from Which?.
Ahead of the government revealing the ‘green’ list of countries that travellers can visit without the requirement for quarantine on their return, Which? mystery shopped six of the UK’s biggest package travel operators to find out if customers making new bookings will get their money back if lockdowns or quarantine prevent them from travelling.
Which? spoke to three agents each from Love Holidays, On the Beach, Teletext Holidays, Trailfinders, TravelUp and Tui.
Of the six companies, only Trailfinders and Tui consistently answered Which?’s questions in line with the law and in line with the company’s official policy.
Agents at all of the others either suggested to the consumer champion’s researchers that they were willing to break the law over refunds, or misled them about how their holiday would or wouldn’t be protected.
Which? asked the travel companies:
Whether customers would get their money back if the government banned international travel before they were due to depart;
Whether they would get a refund for both their flight and accommodation together if the holiday was cancelled by the provider;
Whether customers could cancel for a full refund if they are told they will have to quarantine on arrival at their destination;
And how they would be refunded under the Atol scheme if the company were to collapse.
When asked about the government banning travel before they were due to leave, only Trailfinders, TravelUp and Tui repeatedly gave assurances that they would be entitled to a refund. Love Holidays, On the Beach and Teletext were all inconsistent in their responses.
Legally, customers may not be entitled to a refund if they cannot travel because of a national or regional lockdown. However, Which? only recommends booking with companies that have committed to paying out in this scenario.
While On the Beach officially told the consumer champion it would refund customers in the event of a travel ban, two of its agents said otherwise. Teletext also gave mixed responses and when Which? approached the company for clarification, it refused to comment.
Love Holidays told Which? that customers would only be able to receive a full refund in this scenario if their airline cancelled their flight – and while it agreed this was unfair, it would still deny full refunds on this basis.
By law, customers whose package holiday is cancelled by their provider should be entitled to a full refund within 14 days, regardless of whether the airline cancels the flight or not. However, some companies have been denying full refunds on the basis they have not been able to secure refunds from airlines for the flight portion of the booking.
Airlines require full payment for the flights from the package holiday provider in advance, meaning that when flights booked as part of a package are not cancelled, it can be difficult to recoup the money from the flight carrier.
When Which? investigated, only Trailfinders and Tui committed to reimbursing both flights and hotels within the 14 days legally required.
Trailfinders guarantees customers will receive a full refund if their holiday is cancelled by ‘ring-fencing’ customer payments, meaning when refunds were due, their money would be returned to them in full and without delay – a model not replicated by the other providers. All the other companies suggested that full refunds would depend on whether or not the airline cancelled the flight.
Love Holidays said it would wait to be reimbursed by suppliers before passing the money onto customers, even though it has already faced an intervention from the Competition and Markets Authority (CMA) for withholding refunds from customers while it chased money from airlines.
Similarly, Teletext has also been investigated by the CMA for withholding refunds, and is now facing court action if it fails to refund over £7 million in customer payments.
Despite the company being under investigation at the time, an agent still told Which?’s undercover researcher that customers could expect to wait up to two months for their money back while it chased suppliers for refunds.
While TravelUp said it was refunding within 14 days “wherever possible”, agents told the undercover researcher it relied upon receiving refunds from suppliers, and that it charges customers an admin fee – a minimum of £50 – to chase their refunds for them.
The researcher also asked if customers would be entitled to their money back if they were required to quarantine on their arrival. Denying a refund on this basis is in breach of the Package Travel Regulations, as having to quarantine on arrival should be considered an ‘unavoidable and extraordinary circumstance’ that will significantly affect the performance of a package holiday, meaning customers should be offered the choice between a reasonable alternative or a refund.
Only Tui and Trailfinders said they would provide refunds for customers in this scenario. Agents at all the other companies Which? spoke to said customers would only receive a full refund if the airline cancelled their flight.
However, official responses from Loveholidays, On the Beach and TravelUp all contradicted the advice their agents had given on the phone, insisting that customers would be due a full refund if they cancelled because of instruction to quarantine on their arrival.
The consumer champion also questioned agents about how holidays were protected under the Atol scheme. Atol protection ensures customers will receive the option of a full refund if their provider goes bust before their package holiday takes place or while they are abroad.
Nearly every agent answered correctly when asked if their package holidays were Atol protected. But some agents provided misleading information when asked whether Atol protection applied if a flight and hotel were booked one week apart.
In this situation, while the flight might be covered by Atol if booked through a tour operator, the hotel and transfer would not be. But all three agents for Teletext Holidays incorrectly implied customers booking their flights and accommodation separately would be fully covered.
Which? is urging those considering a package holiday this summer to do their research, and read the terms of a company’s flexible booking policy carefully before booking.
All Which? Recommended Providers have committed to offering full refunds in the event of coronavirus related disruption, and all abide by the Package Travel Regulations. Consumers should avoid companies that cannot guarantee to offer a full refund in the event of further disruption.
The consumer champion is also campaigning for major travel industry reform to ensure greater protection of travellers’ money and enforcement of their existing consumer rights when they book a holiday or a flight.
The CAA has launched a consultation on reforming Atol protections and the protection of customer money which the consumer champion will be submitting evidence to. Meanwhile the CMA is also currently investigating refunds in the package holiday sector, and it should not hesitate to take enforcement action against any companies that continue to break the law on refunds when mass international resumes.
Rory Boland, Editor of Which? Travel, said:“Holiday companies are quick to offer promises that you can book with confidence this summer, but unfortunately many of them won’t be so quick to refund your money if coronavirus prevents you from travelling – and that’s if they refund you at all.
“Whether you can book with confidence ultimately comes down to who you book with. Many of the companies that broke the law last year have suggested they may do so again, so regulators must be ready to take strong action against any operators found to be misleading their customers or breaking the law.
“Travellers considering a holiday this year should only book with companies that guarantee in their flexible booking terms that they will be able to get all of your money back if lockdowns, quarantine and other disruption should strike.”
Teletext Holidays will face legal action unless it repays over £7 million to customers whose package holidays were cancelled due to the coronavirus (COVID-19) pandemic.
On 4 February, the Competition and Markets Authority (CMA) announced that it was opening an investigation into Teletext Holidays after receiving hundreds of complaints.
These showed that people were not receiving refunds they were owed within 14 days, as required by law, for package holidays cancelled by the company due to pandemic restrictions.
The CMA wrote to Truly Holdings Ltd., the company that operates Teletext Holidays and also AlphaRooms.com, in March, setting out in detail its concerns and giving the company an opportunity to address them.
The CMA told the firm it could avoid any potential court action by signing formal commitments – known as ‘undertakings’ – to refund affected consumers and ensure compliance with the Package Travel Regulations going forward.
However, Teletext has not agreed to provide undertakings that are sufficient to address the CMA’s concerns.
The CMA has now informed Teletext Holidays that it is preparing to take court action and will launch proceedings if it does not repay the outstanding refunds, or commit to do so, without unnecessary delay.
Andrea Coscelli, Chief Executive of the CMA, said: There must be no more delays to Teletext refunding customers for holidays they could not take because of the pandemic. It is unacceptable that many have already waited months for the refunds they are legally entitled to.
“We take very seriously the ongoing failure of Teletext Holidays to meet its obligations. The firm must now comply with the law and commit to refunding its customers. If it does not do so, we will not hesitate to pursue this case in court.”
Rory Boland, Which? Travel Editor, said:“We have received countless complaints from Teletext Holidays customers who have been battling for refunds for cancelled holidays for more than a year, so while the regulator’s action is welcome customers will be angry that they still don’t have money they are legally due.
“Teletext is one of many holiday providers that have attempted to shirk their legal responsibilities to refund customers for cancelled trips, highlighting the need for industry-wide reform.
“The government must ensure there are better protections for holidaymakers’ money, while the Civil Aviation Authority – which has been unable to take much meaningful action against airlines holding up the refund process by withholding money from holiday companies – must be given stronger powers.”
The announcement follows ‘significant action’ by the CMA in relation to holiday cancellations during the coronavirus pandemic.
Approximately 2.3 million people across the UK have not received money back for flights they could not take in the last year, with many unable to fly because of national or local lockdowns or restrictions at their destination, according to new research from Which?.
Since the UK went into its first lockdown in the middle of March last year, millions of people have had flight bookings that were not cancelled by the airline, but for reasons that were often out of their control they could not take, meaning that they were not legally entitled to a refund or guaranteed a successful claim through their travel insurance or bank.
Research from the consumer champion has found that approximately 2.3 million people across the UK have been left out of pocket for flights that were not cancelled, despite circumstances often meaning they reasonably – or in some cases, legally – could not travel to their destination.
Under EU 261 regulations, passengers flying on an EU-based carrier or flying from a country in the EU are entitled to a full refund within seven days if their flight is cancelled by the operator, but the regulations do not currently offer passengers any protection if their flight is not cancelled. However, in some circumstances where passengers couldn’t travel, it could be argued that the contract between the passenger and the airline had been frustrated.
Many passengers have been prevented from travelling because of local or national lockdowns, restrictions preventing entry at their destination, or the Foreign, Commonwealth and Development Office (FCDO) advising against non-essential travel.
Passengers in these circumstances would often have only been given the choice of rebooking their flight or losing their money. Rebooking may have meant paying a significant difference in fare if the new flights were more expensive, and trying to choose new dates without knowing when international travel is likely to resume again.
Of those who told Which? they didn’t get their money back, half (49%) claimed they could not travel because of national or regional lockdown restrictions instructing them to stay at home. While during the first national and local lockdowns instructions against non-essential travel were not always written into law, many passengers did not fly due to government guidance.
At the beginning of 2020, Rebekah Evans, from Barry in Wales, booked flights from Bristol to Turkey in October with Easyjet via an online travel agent, costing over £2,000.
Two weeks before their holiday, Vale of Glamorgan entered a local lockdown that was set to be reviewed the day before they were due to fly. Rebekah did not rebook the flights or accept a voucher in the hope that they would be allowed to fly if the local lockdown was lifted.
When the day arrived though, the Welsh government announced a rolling lockdown, instructing people not to leave Wales unless for emergencies. At the time, England was not in a lockdown, so the flight went ahead. Rebekah initially missed out on the opportunity to claim a voucher for the cost of her flight, but since Which? intervened, Easyjet has agreed to offer Rebekah a voucher as a gesture of goodwill.
While travel under this lockdown was not prevented by law, during the November lockdown and under the current national lockdown restrictions, all non-essential travel has been illegal. Despite this, some airlines are currently still operating flights and refusing refunds for those who cannot legally travel.
Ayesha Ellis, from Essex, had flights for her and her family booked with Ryanair to fly to Gran Canaria on February 13th 2021. These were booked almost a year earlier in March 2020, before the UK went into its first lockdown.
Despite the UK’s current lockdown preventing any non-essential travel, the flight went ahead as scheduled.
Ayesha paid more than £1,600 for her flights, but was told if she wanted to rearrange them, she would have to pay a fee of €95 per person per flight. Because the flights were booked before Ryanair dropped its flight change fee, this would have come to a total of €760 more for her family of four, plus the price difference of the new flights. Ayesha, a travel agent, has still not been refunded the £1,600 and told Which? she will never use the airline again, both personally and in her job.
Just over a quarter (27%) of those left out of pocket said they were unable to fly because of restrictions in place at their destination that would prevent them from entering the country.
Stephen Middleton, from Manchester, booked flights with Ryanair to Spain with his fiancée in July 2020, after the government allowed foreign travel again. They were due to fly in August, but paid more than £280 to move the flights to Christmas Eve after it was announced they would have to quarantine on their arrival back to the UK.
But when the time came for them to take their rearranged flight, they were again unable to travel because of restrictions at the Spanish border preventing them from entering the country. Stephen was told he could move his flights again, but would have had to pay more money to do so.
Others said they were unable to travel because the FCDO had advised against all non-essential travel to their destination, with nearly four in 10 (37%) citing this as their reason for not flying.
While those with package holidays would have had their bookings cancelled by the provider in these circumstances, entitling them to a full refund, many airlines continued to operate flights to countries with an FCDO warning against non-essential travel, on the basis that they needed to operate them as scheduled in order to facilitate essential travel.
While not illegal, travelling against FCDO advice usually invalidates travel insurance, and could potentially put your health at risk by visiting a country with high rates of infection. Additionally, many of those returning from these destinations would have also had to quarantine for two weeks after returning to the UK, with three in 10 (28%) people saying the need to quarantine prevented them from travelling.
Which? first raised the issue of people being unable to get their money back for flights they couldn’t take because of lockdown with both the Civil Aviation Authority (CAA) and Competition and Markets Authority (CMA) in March 2020.
While not all passengers who told Which? they hadn’t received their money back were legally prohibited from flying, the consumer champion has shared its findings with the CMA to aid its investigation into whether airlines have breached consumers’ legal rights by failing to offer cash refunds for flights they could not lawfully take because of lockdown restrictions.
Which? is advising anyone considering booking flights for this summer to wait until the situation around international travel becomes clearer, and when the time comes, to book a package holiday rather than a flight-only booking for stronger passenger protections, and only with a trusted provider that offers a generous and flexible booking policy.
Rory Boland, Editor of Which? Travel, said:“For almost a year now, Which? has been hearing from frustrated passengers who’ve been left out of pocket for flights they were unable to take, often through no fault of their own, because the flight went ahead as scheduled.
“While some have successfully been able to claim on their travel insurance or through their bank, others have been left high and dry.
“With non-essential travel currently illegal, airlines must play their part in protecting public health by ensuring no one is left out of pocket for abiding by the law and not travelling. All airlines should allow passengers the option to cancel for a full refund, as well as fee-free rebooking options, while these restrictions remain in place.”
Some Lastminute.com customers still haven’t received all their money back for cancelled holidays, despite the online travel agent committing to the regulator that all refunds would be paid by the end of January, Which? has revealed.
After months of breaking the law on holiday refunds, Lastminute.com was investigated by the Competition and Markets Authority (CMA) in December and it agreed to pay all outstanding package holiday refunds that were cancelled on or before 2 December by the end of January 2021.
Despite this, Which? has seen reports from several customers through social media who still hadn’t received a full refund after the deadline had passed.
At the time of the CMA’s intervention, the UK’s seventh largest travel agent owed more than £7 million in refunds for holidays cancelled on or before 2 December. Although it seems to be paying back customers for the hotel portion of their trips, Which? found evidence that it had not returned the cost of cancelled flights to some of its customers by the deadline.
Some online travel agents have reported difficulties in securing refunds from airlines to pass on to their customers, meaning many people have reported only receiving partial refunds for their cancelled package holidays.
However, under the Package Travel and Linked Travel Regulations 2018, if a package holiday is cancelled by the provider, the customer is legally entitled to a full refund within 14 days. A package holiday is a combination of at least two types of travel or travel-related services made through the same source in a single booking, most commonly flights and accommodation.
The commitment made by Lastminute.com to the CMA was to refund all money to customers for both accommodation and flights.
Sheryl McLeod, one of the customers Which? heard from, told the consumer champion she booked a holiday for two adults and two children to Barcelona for July 2020 through Lastminute.com.
She told Which? that in June an agent from Lastminute.com advised her the flights and hotel were cancelled and there were no alternatives, so the trip would be cancelled and refunded.
Sheryl then heard nothing for months and struggled to speak to someone at Lastminute.com. In September she was told by email that her refund was ready and she accepted the option of a cash refund. For months afterwards Lastminute.com claimed it was finalising her refund. Then, on 27th January, she was sent £932.49 – more than £300 short of the £1274.68 she was owed in total.
Sheryl tried to chase up this discrepancy over the phone, but she was met with an automated message to log into Lastminute.com to access her booking. When she accessed her account online, the trip was listed under ‘past bookings’, with no mention of the missing money, or anything to help her apply for it.
Claire Barder is another Lastminute.com customer who told Which? she hadn’t received a full refund for her cancelled holiday before the CMA’s deadline.
Despite receiving confirmation of a refund for her cancelled package holiday to Barcelona, which was meant to take place in July 2020, Claire was only given a refund of £431.75 – nearly £600 short as it did not include the flight portion of the trip.
Claire was told in an email that her total refund was worth £1,010.23. However Lastminute.com told her that because of Ryanair’s policy, she would need to fill out a form on the airline’s website to apply for this refund, despite Lastminute.com committing to the CMA that it would be responsible for refunding the total cost of the cancelled holiday.
Only after Which? approached Lastminute.com were both customers told they would receive their money back for the outstanding portions of their refunds.
Which? has shared its findings with the CMA, and is calling for it to take appropriate enforcement action against the online travel agent.
Rory Boland, Editor of Which? Travel, said:“Despite being given ample time to return all outstanding refunds to customers – as well as clear instructions regarding its liability for refunding both accommodation and flight costs – Lastminute.com has failed to meet this commitment to the regulator.
“This is perhaps unsurprising to its customers, given it was voted the UK’s worst accommodation booking site in our latest survey, faring little better when it was ranked for flight bookings.
“The CMA was right to intervene to demand action from the online travel agent, but after failing some of its customers once again, tougher measures need to be taken. The CMA should uncover how many customers were not refunded in time and take appropriate action against Lastminute.com, sending a clear message that this kind of behaviour is unacceptable.”
A spokesperson for Lastminute.com responded: “Firstly we’d like to start by saying that the refund process has been a very complex and difficult process due to the length and severity of the ongoing pandemic and frequent changes in the travel advice rules.These conditions not only impact us but the entire travel industry.
“Throughout this very challenging year, our customers have remained our number one priority, and we at lastminute.com continue our commitment to dedicating our resources to helping them with their requests, whether it’s involuntary or voluntary cancellations, re-booking to new destinations or booking new holidays.
“Each customer request is unique, and often requiring a human touch-point and we’ve been working hard to get the money processed back through the system and into our customer’s pockets as quickly as possible. In the cases you have highlighted, we can confirm that the refund has been sent to the customers also for the flight.”
“We confirm our full commitment and dedication during the last months in order to refund and support all our customers and meet the deadlines agreed with the Competition and Markets Authority. We will discuss our obligations on the 10th of February directly with the Competition and Markets Authority as agreed with them.
“Customer satisfaction is our number one priority and we keep listening and learning even from the feedback generated by a very small number of readers involved in the Which? survey. Every comment counts. We have already refunded more than 49,000 customers and completing any open refunds remains our top priority in these unprecedented crisis.”
A Competition and Markets Authority (CMA) spokesperson said: “CMA action led to lastminute.com committing to pay out over £7m to customers waiting for money back.
“They must now report to us on how they are complying with the commitments they signed up to and the deadlines agreed. Should it become clear that they have breached these undertakings we will consider further action.”
British Airways and EasyJet are going against EU guidance and refusing to refund unused vouchers for flights cancelled during the pandemic, Which? can reveal.
Some passengers willingly accepted vouchers in place of cash refunds when their flights were cancelled because of coronavirus, believing they were helping the airlines. But others claim they weren’t told they were entitled to cash refunds, or that they were misled into accepting vouchers they didn’t want.
The European Commission issued guidance in May recommending that airlines automatically refund any unused vouchers 14 days after they expire. However, this is only guidance, not a legal requirement.
While Ryanair says its vouchers can be refunded at any time, BA and Easyjet insist that once issued, their vouchers can not be exchanged for cash. That means passengers could be left hundreds of pounds out of pocket if they do not use them by the time they expire.
When flights are cancelled by an EU airline or by an airline flying from an EU airport, passengers are entitled to a cash refund under EU Regulation 261 within seven days of the cancellation. But after the pandemic grounded most flights leaving the UK earlier this year, all of the UK’s biggest airlines failed to meet this legal requirement, and many passengers were given vouchers instead.
At the height of the pandemic earlier in the year, many customers with cancelled flights struggled to contact airlines to ask for their money back. BA customers in particular complained after the airline removed its online refund form from its website and directed people to its overwhelmed customer service line, which played an automated message before hanging up on the passenger.
Some BA passengers have also complained to Which? that they automatically received vouchers for cancelled flights when they thought they’d applied for refunds through the website’s ‘Manage my booking’ page.
Jackie Harbridge says when she called BA to request a refund a recorded message directed her to Manage My Booking on BA’s website, but when she clicked on the refund button, she says she received a voucher for £2,118 for the flights to San Francisco.
She tried to call BA immediately, but struggled to get through. When she eventually got to speak to an agent she was told that since she had requested vouchers the decision could not be reversed.
“I was completely misguided by the instruction in BA’s Manage My Booking, which specifically quoted ‘Refund’ but turned out to be for a voucher, which is completely useless to us,” said Jackie. She and her 83-year-old husband no longer plan to travel so they can’t make use of the vouchers.
BA denies its claims process is misleading, saying that it has issued more than 2.1 million cash refunds. It said it is clear that customers must call to request cash refunds, and insists that they only get a voucher if they fill out a form that clearly states they are requesting a voucher.
While Easyjet passengers can request a refund online when their flight is cancelled, some willingly accepted vouchers to help support the airline.
But some passengers now may not be able to use their vouchers because the airline has cut back on some routes in recent months, and Easyjet has said it will only refund vouchers in “exceptional circumstances as a gesture of goodwill”.
An Easyjet spokesperson said: “For passengers who have chosen a voucher as compensation for their cancelled flight, we would only reverse this and offer a refund in exceptional circumstances as a gesture of goodwill if the customer’s circumstances justify it (eg. A school group no longer able to re-travel).”
A number of Easyjet’s flight routes have yet to restart, and a number of routes passengers were initially booked on have been dropped since vouchers were issued, after the airline pulled out of Southend Airport and dropped a number of routes from Newcastle and Stansted airports. Easyjet’s vouchers are only valid for a year, meaning many passengers may be left with vouchers they cannot use.
BA has dropped 60 per cent of its flights up to the end of this year and also pulled out of the Isle of Man. However, it has extended the validity of its vouchers so they can be used any time up to April 2022.
Additionally, BA and Easyjet both say vouchers are transferable, so passengers can pass them on to family and friends if they are unable to use them.
On top of ignoring guidance on refunds for unused vouchers, BA and EasyJet have also said that they will not be offering refunds for flights that operate as scheduled, meaning many passengers will only have the option of rebooking their flight to a later date if they cannot fly due to England’s latest lockdown. Ryanair has also said it will not offer refunds for flights that are not cancelled while passengers are in lockdown.
Which? believes the Civil Aviation Authority should be doing a better job of making it clear to airlines that they should be following legal guidance on vouchers and refunds, but without powers to issue fines or take swift action, it has struggled to get a grip as airlines have played fast and loose with the rules during the pandemic.
To help restore trust in the travel industry, the government must urgently review the CAA’s powers as part of its aviation recovery plan, to ensure passengers have an aviation regulator with the powers it needs to stand up for their rights.
Rory Boland, Editor of Which? Travel, said:“As we head into a winter that is bound to bring more flight cancellations, it’s extremely concerning to see the UK’s biggest airlines disregarding European guidance and letting their passengers down when it comes to their refund rights.
“BA and Easyjet must immediately make it clear that passengers will not face losing their money if they are unable to use a voucher, while all airlines should be offering cash refunds to passengers prevented from travelling by lockdown laws.
“Major airlines have acted shamefully and without fear of consequences during this pandemic – the government must urgently review the CAA’s powers as part of its aviation recovery plan to ensure passengers have a regulator that can effectively stand up for them.”
Some passengers have successfully secured refunds for vouchers they claim they didn’t ask for by going through their airline’s ADR scheme.
The CAA recommends anyone who had a voucher forced upon them, or whose airline is refusing to refund them should do the same – BA uses CEDR, while EasyJet uses CDRL.
Passengers whose airline isn’t a member of an ADR scheme should seek redress through the CAA’s Passenger Advice and Complaints team.
Kim Norris received a cash refund of £1,099 after taking her case of an unwanted voucher to BA’s alternative dispute resolution service, CEDR. It said that, on the balance of probabilities, she had not agreed to accept a voucher.
BA said that Kim applied for a voucher via its website, but it only provided CEDR a screenshot of the type of form it says she filled out, not her specific form. BA acknowledged that Kim had asked twice for a refund, by phone and by email. CEDR found that when BA issued the voucher, it was unlikely that Kim had voluntarily consented to accept it.
In its ruling, CEDR also pointed to a recommendation from the European Commission that if vouchers haven’t been redeemed by the end of their validity period they should be automatically reimbursed within 14 days.
A British Airways spokesperson said: “We do not auto-issue vouchers, they can only be issued when a customer has requested them by filling out the form. Our website is clear that when filling out the form it is to apply for vouchers.
“Customers are always entitled to a cash refund if their flight has been cancelled, and must call us to do this, which is clearly displayed on our website. Customers have up to a year after their flight was due to operate to get in touch with us for a cash refund – and we have processed over 2.1 million cash refunds to date.
“If a customer uses a voucher to make a new booking which is then subsequently cancelled by us, they would be entitled to choose either a cash refund (if the original booking was paid for in cash), or a voucher in a similar way as before.”
More than £8 billion worth of package holidays are estimated to have been cancelled since the beginning of the coronavirus outbreak, with just over £1 billion still estimated to be outstanding in refunds, according to new research from Which?.
Millions of people have had a package holiday cancelled by their provider since the UK went into lockdown in March, with refunds for one in five (21%) holidays where a cash refund was requested still outstanding at the beginning of October.
Which? surveyed more than 7,500 people who have had a package holiday cancelled as a result of the pandemic to understand how the situation around refunds has developed since the UK first entered lockdown.
An estimated total of just over £1 billion is being illegally withheld in partial or full refunds from customers who requested their money back, with the survey suggesting the average cancelled holiday cost £1,784.
Under the Package Travel Regulations 2018, if a package holiday is cancelled by the provider, the customer is legally entitled to a full refund within 14 days. A package holiday is a booking comprising at least two types of travel or travel-related services made through the same source, most commonly flights and accommodation.
Around 9.4 million people are estimated to have had a package holiday cancelled by their operator since the pandemic hit the UK. The backlog of refunds for cancellations caused by the coronavirus pandemic meant that the majority of operators struggled to refund within the legal time limit, with customer service lines overwhelmed by travellers trying to contact them to ask about their refunds.
Some package providers reported delays in receiving refunds back from airlines, many of which – despite making commitments to the aviation regulator – continue to break the law on refunds. This has meant package holiday operators have often only been able to process partial refunds for customers.
But while some companies have managed to get on top of the backlog caused by these delays, several other major providers have continued to leave passengers out of pocket, with Which? still receiving huge numbers of complaints from customers waiting for refunds.
The average amount of time spent contacting package holiday companies about cancelled trips was around 15.5 hours. For more than four in 10 (43%) of the cancelled holidays reported to Which?, customers said they waited longer than a month to get their money back.
During the summer, the Competition and Markets Authority (CMA) launched an investigation into package travel companies’ handling of cancellations and refunds. Following pressure from Which? and the CMA, Tui agreed to refund all customers by the 30th of September. The regulator also recently confirmed that Virgin Holidays has also committed to processing refunds for all holidays cancelled up to the end of October by 20 November.
Nearly four in ten (37%) people who have had a package holiday cancelled by their provider since the beginning of the outbreak said the experience has had a negative impact on their confidence in the travel industry.
Which? is calling on the government to outline how it will support the travel industry through the rest of the pandemic, and is urging it to introduce a travel guarantee fund to support package holiday providers that are struggling to fulfil their legal obligations to refund customers. It should also conduct a review of passenger protections following the coronavirus outbreak.
While the CMA has already secured commitments to process refunds from some companies, it is clear that some firms are not improving their practices of their own volition. The competition regulator must continue to closely monitor operators and secure further undertakings from those that flout the law, to prevent trust in travel being damaged any further.
Which?’s advice to anyone looking to book a future holiday is to book with a provider that can be trusted to refund their money promptly if they can’t travel, and to consider booking a package over a flight-only booking, to ensure they have greater legal protections if they cannot travel because of coronavirus.
Rory Boland, Editor of Which? Travel, said:“Since Which? first highlighted the issue of holiday companies delaying or denying refunds for holidays cancelled due to coronavirus, some operators have continued to flout the law and the sums of money being illegally withheld from holidaymakers are staggering.
“It’s simply unacceptable that some of the UK’s largest operators are still getting away with breaking the law, but without meaningful intervention from the government and the regulators in this space, many people will struggle to get their money back.
“The CMA must take firm action against any operators that are continuing to drag their feet on refunding holidaymakers, and the government must urgently set out how it will support travel companies in fulfilling their legal obligations to passengers.”
2021 holidays – the tour operators and travel agents Which? recommends:
HOLIDAYMAKERS IN EDINBURGH OWED NEARLY £8 MILLION IN WITHELD REFUNDS
LOCAL MSP SAYS REGULATOR MUST DO MORE TO SUPPORT CUSTOMERS
SNP MSP for Edinburgh Pentlands has demanded action after the latest estimations from Which? suggested people in Edinburgh could be owed £7,858,609 in withheld refunds for cancelled trips.
Customers across the UK are waiting on more than £1 billion in refunds according to the results of the survey of more than 7,500 people who had a package holiday cancelled as a result of the pandemic.
Expressed a proportion of population, the findings of the survey suggest that holidaymakers in Edinburgh could be owed nearly £8 million.
Holiday companies are required to refund money within 14 days but the huge number of cancellations has left many of firms overwhelmed. 21% of those surveyed who requested a refund in March were still waiting at the beginning of October.
The research also found that the average cost of a cancelled holiday was £1,784.
During the summer, the Competition and Markets Authority launched an investigation into package travel companies’ handling of cancellations and refunds.
Commenting on the figures, local SNP MSP Gordon MacDonald said: “For many people, this saga has rumbled on for far too long – it’s time for the UK government and the market regulator to get a hold of this situation.
“Times are tough financially for many local families, and while I appreciate holiday companies were inundated with refund requests earlier in the year, we are now in November.
“We aren’t talking about spare change here – the average cost of a cancelled holiday was £1,784 according to this survey.
“While we all recognise the travel industry’s acute financial difficulties, there can be no excuse for them hoarding the hard-earned cash of their hard-pressed customers.
“As a matter of urgency, the UK government needs to set out how travel companies will be supported financially to fulfil their legal obligations to passengers – and take firm action against those who continue to drag their feet.
“I would urge anyone in Edinburgh Pentlands who is still waiting on a refund from March to get in touch with my office – I will offer any support I can to make sure you get your money back.”
Some airlines are still failing to refund passengers
Ryanair, Virgin Atlantic and Tui are failing to refund passengers in agreed timeframes, breaching recent commitments to the regulator that they would speed up their refund process.
Which? has seen evidence that the airlines are reneging on promises they made to the Civil Aviation Authority (CAA) about how they would improve their refund processes, including from some passengers who have been left out of pocket since March.
The findings come after the CAA reviewed airlines’ behaviour and identified several carriers that weren’t paying refunds ‘sufficiently quickly’, but opted not to take enforcement action after receiving commitments from the airlines to improve their performance.
However, Which? found that Ryanair, Tui and Virgin – all identified by the CAA as not processing refunds fast enough – are falling short of the promises they made to the regulator, prompting concerns from Which? that the regulator’s enforcement powers may not be fit for purpose.
The CAA told Ryanair it wasn’t satisfied that it was taking 10 weeks or longer to process refunds, and that airlines offering vouchers should also be offering passengers the choice of a cash refund. Following the regulator’s review, Ryanair published a commitment on its website that all refund requests up to the end of May would be cleared by 31 July.
But Which? has heard from Ryanair passengers who are still waiting for refunds from March, and who are still trying to get cash refunds after they were initially sent vouchers despite requesting cash refunds.
Virgin Atlantic told the CAA its maximum waiting time for refunds is 120 days, but some passengers have been trying to get refunds from the airline for longer than four months.
The consumer champion heard from two passengers who have been waiting over 130 days for refunds for flights that were cancelled in March.
Tui was reprimanded by the CAA for issuing vouchers and then making customers wait a further 28 days before they could apply for their money back. Tui told the CAA that “on average, cash refunds will be processed within 14 days”.
However, despite telling the regulator it is no longer automatically issuing vouchers, Tui still states on its website that customers must wait for a voucher before they can claim a cash refund.
Which? has heard from a passenger who is yet to even receive the voucher that she needs to claim her refund – or received any other communication from Tui – after her flight was cancelled in April.
Following its review, the CAA said a number of airlines have committed to speeding up the time it is taking to process refunds without requiring enforcement action, and that it would continue to monitor those airlines and continue to push for further improvements.
It said it would consider if enforcement action was appropriate if airlines failed to meet their commitments. However, it also highlighted that its enforcement powers are not well suited to swift action, and that it can take a considerable period of time for a case to come before the courts.
Which? is concerned that if airlines are continually allowed to openly break the law on refunds through this crisis, it will set a precedent that sees airlines continue to treat passengers unfairly without fear of consequence or sanctions.
Airlines have repeatedly been given the benefit of the doubt, but some have treated the regulator’s efforts to secure voluntary commitments with indifference. It is clear that more needs to be done to give the CAA the clout to effectively hold airlines to account.
Which? is calling for the government to enhance the CAA’s existing powers to allow it to more easily take swift and meaningful action against airlines that have repeatedly been exposed for disregarding the law and their passengers over the course of the pandemic.
The consumer champion believes this should be the first of a series of reforms to the travel industry, to help ensure the future of international travel from the UK and to help restore consumer trust in the sector.
Rory Boland, Editor of Which? Travel, said:“Time after time, Which? has exposed airlines breaking the law on refunds for cancelled flights due to the pandemic and treating their passengers unfairly, and we’re concerned that they now feel empowered to do as they please without fear of punishment.
“Passengers must be able to rely on a regulator that has effective powers to protect their rights – especially at a time of unprecedented turmoil. The government needs to step up and ensure the CAA has the tools it needs to hold airlines to account, or risk consumer trust in the travel industry being damaged beyond repair.”
Kirsty Ness requested a cash refund from Ryanair immediately after her flights were cancelled in late March, but on 20 April she received a voucher instead.
Kirsty has called Ryanair several times to cash in the voucher, but she has yet to receive her refund.
Palliative care nurse Jeanette Howard was sent a voucher for her Ryanair flights to Alicante that were cancelled on 20 March, even though she had applied for a cash refund.
She says she’s called the airline ‘on a daily basis’ since late April to ask to exchange the voucher for cash, but she’s still waiting for her money back.
Ryanair did not respond to Which?’s request for a comment.
Jeff Palmer and his wife were due to fly with Virgin Atlantic to Vegas on 9 April. He first requested a refund from Virgin on 31 March after they cancelled his flights, and told Which? he has tried ‘every method under the sun’ to contact them.
He received emails telling him it would be 90 days, then 50, then another 14, before receiving a refund for his flight but not his wife’s – despite it being part of the same booking. He told Which? he has contacted them several times since, and still no sign of a refund for her ticket.
A Virgin Atlantic spokesperson said:“The huge volume of refund requests we have received, combined with the constraints on our teams and systems during the pandemic, has meant that refunds have been taking longer than usual to process, and we sincerely apologise for this.
“Since April, we have been focussed on making improvements wherever possible. We’ve boosted the size of the team dedicated to processing refunds five-fold, with over 200 people now directly involved. This has increased our capacity to process a greater number of refunds, more quickly and we continue to minimise the wait time for existing refund requests.
“Thanks to the progress made, we are steadily reducing the maximum processing time for each new Virgin Atlantic and Virgin Holidays cash refund. For customers requesting a refund in August, we expect the maximum processing time to be 80 days, from the date the refund is requested. For those requesting a refund in September, we expect it to take a maximum of 60 days, and then reduce to 30 days for refunds requested in October, before returning to normal levels.
“Up until recently we have been committed to processing existing refunds within a maximum of 120 days, from the date the refund is requested, and we inform each customer when this is done by email. The timeframe begins from the date the refund is requested and acknowledged by a customer agent, not the date the flight is cancelled.
“We are aware that there are a portion of Virgin Atlantic bookings with pending refund requests which were incorrectly inputted and unfortunately now exceed 120 days for processing. This was an administration error and as soon as this was identified we urgently investigated. We are resolving this as a priority and any customers affected will have their refund processed as soon as possible.”
Kath Lowe’s Tui flight from Manchester to Tenerife was cancelled on 29 April, but she hasn’t received a voucher – or any other communication – from Tui and until she does she can’t claim a refund.
She says she’s tried calling Tui on many occasions but she’s never managed to get through to its call centre.
A Tui spokesperson said:“Customers with cancelled flight only bookings which were due to depart before 11 July were issued refund credit vouchers, and could then apply for a cash refund via our online form. These refunds were processed within 28 days.
“Customers with cancelled flight only bookings which were due to depart from 11 July onwards will automatically receive cash refunds. These refunds will be processed within 14 days.
“We’re really sorry to any customers who may have experienced delays in receiving their refund.”
Tui has also confirmed a voucher was sent to the case study in May but speculated it may have been lost in junk mail. They’ve now requested for this to be cancelled and a refund to be issued.
The CAA said:“We will review any supplementary evidence provided to us by Which? – beyond the 12,000 submitted to us during the review – but we will need to see individual examples in order to consider what further action is needed with the airlines.
“Throughout our review, alongside information received from airlines, we also used information from consumers and consumer groups, as well as mystery shopping from our consumer protection team, to determine what commitments were needed from airlines to improve performance.
“If we had not received such commitments during our review, then our next step would be to consider formal enforcement action. However, this enforcement process can take a significant period of time without providing short-term results for consumers. For example, the enforcement action we commenced against Ryanair in 2018 is not expected to come to court until at least 2021.
“While our initial review has finished, we have been clear that we will continue to monitor performance and should any airline fall short of the commitments they have made to us, we will take further action as required.”
The majority of Ryanair passengers surveyed who have asked for a refund for a cancelled flight during the coronavirus crisis are still waiting for their money back, according to new research from Which?.
Which? surveyed nearly 2,800 airline customers that had flights cancelled since mid-March as a result of the global pandemic, to find out about their experience with their airline. Of those, over 1,600 people told Which? they asked their airline for a cash refund.
Ryanair was the worst of the UK’s four biggest airlines for processing refunds for cancelled flights, with 84 per cent of those who asked for a refund telling Which? they have still not received their money back.
Just five per cent of Ryanair customers surveyed said they had their money returned to them within seven days – the time frame that EU carriers are legally obliged to process refunds within. Only one in six (16%) Ryanair customers have received a refund at all.
Ryanair customers have continuously complained to the consumer champion about the airline’s approach to processing refunds, with numerous changes to its approach to refunds confusing customers of their options.
Despite initially telling customers it was processing refunds at the beginning of the crisis, customers reported that Ryanair provided refund forms that didn’t work, before attempting to force vouchers on passengers who had specifically requested refunds. It also repeatedly changed the timeframe for receiving a refund, suggesting at one point customers may have to wait up to 12 months for their money back.
Easyjet customers also reported finding it difficult to get a refund. Just one in seven (14%) Easyjet customers received a refund within seven days, and around three in five (63%) are still waiting for their money back.
In contrast, a quarter (23%) of British Airways customers and one in five (19%) Jet2 customers are still waiting for their money back, with four in 10 (39%) BA customers receiving their money back within the legal time frame, and three in 10 (29%) Jet2 customers refunded within the seven day window.
British Airways has previously been criticised for its approach to refunding customers, removing its online form for requesting a refund and instead directing customers to a phone line where they are often unable to speak to someone due to high call volumes.
Which? recently revealed that trust in the travel industry has reached an all-time low, with data from its Consumer Insight tracker showing that trust in airlines and holiday companies has dropped to its lowest score on record in the seven years the consumer champion has collected the data, following airlines’ handling of refunds for cancelled flights.
Following the Civil Aviation Authority (CAA) announcing its investigation into airlines’ handling of refunds, Which? has launched a tool to allow consumers to report their airline to the regulator if they have been unable to get a refund for a cancelled flight, and is encouraging people to share their experiences.
Which? has also repeatedly called on the government to step in with urgent support for the industry, to allow airlines and holiday companies the financial means to refund their customers without fear of going bust, and to help restore trust in the travel industry.
Rory Boland, Editor of Which? Travel, said: “We have heard from thousands of frustrated passengers who have told us they are finding it almost impossible to get refunds they are legally entitled to from airlines, with some having waited months now without a penny returned to them.
“Some airlines are doing much better than others at refunding their customers, proving that while these are indeed difficult times for the industry, withholding customers’ money from them is simply inexcusable.
“The regulator and government cannot sit on their hands any longer. The CAA must urgently hold airlines that are brazenly breaking the law to account, and the government must set out how it will support the industry where necessary if airlines are unable to refund their customers without fear of going under.”
Time taken to refund
British Airways
Easyjet
Jet2.com
Ryanair
Within 7 days
39%
14%
29%
5%
Refund not yet received
23%
63%
19%
84%
Ryanair did not respond to Which?’s request for comment.
A spokesperson for British Airways said: “If a customer’s flight has been cancelled, they should call us to discuss their options. They can rebook, refund or choose to take a voucher to fly at a later date. Refunds can be requested at any point up to 12 months after the start date of the journey.”
A spokesperson for Easyjet said: “Customers on cancelled flights can transfer to an alternative flight free of charge or receive a voucher for the value of their booking online. Customers may also request a refund by submitting a claim in writing via a dedicated refund webform, online. We are processing refunds for customers and aim to do so in less than 28 days.”
A spokesperson for Jet2 said: “In view of the ongoing travel restrictions caused by the Covid-19 pandemic, we have taken the decision to recommence our flights and holidays programme on July 1st. The health and safety of our customers and colleagues is our absolute priority, and we are continuing to monitor the situation very closely.
“Like all other airlines and tour operators, the restrictions caused by the Covid-19 pandemic have impacted us. With aircraft grounded, our focus has been on looking after the many thousands of customers whose flights and holidays have been affected, and we are very proud to have been repeatedly praised by customers, media outlets, industry commentators and consumer organisations for how we have been treating customers in response to the pandemic.
“We are continuing to operate a fully staffed call centre, and even though our teams are subject to the same difficulties and restrictions as everyone else, they are working tirelessly to proactively contact customers in departure date order to discuss their options. We believe that contacting customers in departure date order is the fairest way to deal with this, and the feedback we have received tells us this has been the right thing to do.
“We understand that these unprecedented events have had a huge impact on our customers, and we would like to thank them for their loyalty, understanding and patience.”
The banking industry is taking an inconsistent and confusing approach when dealing with refund claims for customers who have reached a stalemate with a business over refunds for coronavirus cancellations, new Which? research has revealed.
With huge numbers of consumers deeply dissatisfied with travel companies and other businesses asking them to accept credit notes or rebooking instead of offering refunds, Which? has heard reports from frustrated bank customers who have had claims turned down.
This includes one customer who was denied a refund of a £2,200 payment split between Halifax and Metro Bank cards for a cancelled ski trip and another left £750 out of pocket after RBS rejected her claim. In both cases the customers were told a refund was not possible because they were being offered credit notes or vouchers.
The cases prompted the consumer champion to investigate how banks are handling claims under two forms of consumer protection.
The first of these protections is chargeback, which covers all card payments. While not a direct consumer right, it is a process provided under card schemes which reverses a transaction if a customer is not able to resolve a dispute with a business for a variety of reasons.
The second is Section 75 of the Consumer Credit Act 1974, a legal protection for credit card users on purchases of more than £100 and less than £30,000, which gives the customer a claim against the card issuer as well as the retailer or trader for the goods or service supplied.
Despite guidance issued by Mastercard and Visa stating that customers are able to pursue the chargeback route if they are offered a voucher or the option to rebook, when Which? asked banks to confirm if they would attempt to process refunds, MANY STATED THAT CLAIMS WOULD NEED TO BE HANDLED ON A CASE BY CASE BASIS. The same applied to Section 75.
Which? is concerned that a failure to provide even general information about the circumstances where a claim could be successful risks leaving consumers unaware of vital consumer protections that could help them get their money back at a time when people’s finances are significantly stretched.
However, some banks did provide clearer information about the prospects of consumers getting their money back. In relation to chargebacks, Virgin Money (Mastercard) made it clear that if the alternative arrangements are not covered in the terms and conditions, they would normally expect a chargeback to be successful.
Starling Bank (Mastercard) and Lloyds Banking Group (Mastercard and Visa) said that they will initiate a chargeback where the offer of vouchers or free rebooking is not deemed suitable by the customer.
But Which? has also heard from a Halifax customer who was turned down for a chargeback request for a cancelled holiday based on these circumstances, despite the bank being part of Lloyds Banking Group – raising fears that the rules are not being applied evenly.
The number of people using the free Which? chargeback and Section 75 tool has shot up to 10,000 in March and April so far, compared to 1,000 in January and February of this year.
This highlights how many people are getting nowhere with businesses on refunds, often in cases where a significant amount of money is on the line. Amid confusion over the protections the banks offer in these circumstances, Which? is calling for the industry to be more upfront about the situations where chargeback and Section 75 are likely to be appropriate for consumers in relation to coronavirus-related cancellations. It believes banks should follow the lead of those in the industry who have committed to providing customers with the best prospect of getting their money back.
Gareth Shaw, Head of Money at Which?, said: “While it is a very difficult time for businesses, the coronavirus outbreak has also put people’s finances under considerable pressure, and they deserve to get their money back if they want a refund for a cancelled event or trip, rather than a voucher or the option to rebook.
“However, there is clearly confusion about the circumstances which allow banks to help their customers achieve this. There needs to be greater clarity and consistency about claiming through banks, and the industry should ensure that all bank customers have a fair chance of getting their money back.”
