New report finds £781m of consumer cash locked up in ‘refund credit’ from COVID-19 cancelled holidays
It also found that 43% of consumers surveyed who accepted an RCN were not offered a full cash refund when their holiday was cancelled - despite this being their legal right.
A new white paper exploring the impact on consumers as a result of holidays cancelled due to COVID-19 has been published today.
As YouGov data on the volume and value of Refund Credit Notes (RCNs) that are currently in circulation comes to light, the paper – which was commissioned by one of the UK’s largest holiday companies, On the Beach, and has been written by financial broadcaster, journalist and consumer expert, Georgie Frost – has revealed that a whopping £781.5 million of consumer cash is currently tied up in said RCNs, or “IOUs” with many travel companies.
It also shows that 43% of the consumers surveyed who accepted an RCN were not offered a full cash refund when their holiday was cancelled, despite this being their legal right.
As a result of the findings, On the Beach has set out five recommendations to help restore consumer trust in the industry – including a call for holiday companies to proactively contact their customers still holding RCNs from 2020 and offer them a full cash refund.
The beach holiday expert is also encouraging consumers currently holding an RCN but don’t want one, to contact their holiday provider now and ask for a full cash refund.
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It’s estimated that around 8.1 million people had a package holiday cancelled due to COVID-19.
Only half of those with a cancelled holidays received a full cash refund, and 851,000 (nearly 11%) accepted an RCN rather than cash, with the white paper outlining that over a million people with an RCN or rebooking were not offered a cash refund at the point of cancellation, even though this is a legal requirement.
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What’s more is that 52% of consumers surveyed were unaware of their legal right to cash.
Around 8.1 million people had a package holiday cancelled due to COVID-19 / Credit: Flickr
“It’s sad to think that a family who has saved for months or even years for their one summer holiday abroad has had to fight to get their money back, and in many cases have not been provided with full and transparent information of what they are entitled to when their holiday was cancelled.” said Anna Richardson, who has written a foreword for the white paper.
“Looking forward to your holiday is a massive part of the whole experience, but while there is still so much uncertainty and disruption, people are understandably lacking the confidence to plan and book again because they’re unsure of their rights if it gets cancelled.
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“The smoke and mirrors being used by some holiday companies is wrong.
“I urge people who had their holiday cancelled to use their right to a full cash refund and contact their travel provider today to ask for their cash.”
Simon Cooper – Chief Executive of On the Beach – added: “COVID-19 shocked the travel industry and it was challenging for everyone in the early months to manage the disruption and volume of cancellations.
“We’re over 14 months on now and yet the knock on impact of refunds on consumer confidence continues to affect the industry. Even now, only a third of people say they would consider booking a holiday to a green list destination, so we have to do something to restore their confidence.
“Without it the industry will continue to be in trouble.”
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OnTheBeach is encouraging consumers with an RCN to contact their holiday provider / Credit: PublicDomainImages
He continued: “There are millions of people still holding these IOUs, in some cases over a year later with very limited opportunity to go on holiday [and] this is all because some travel companies actively avoided offering cash and used their customers’ money for future holidays as cash flow. No one would expect to receive a loan for this long and pay no interest, so why should these companies continue to hold onto their customers’ money for future holidays?
“To begin regaining consumer confidence and trust in the industry, we want those people with refund credit notes from 2020 to be refunded in full.
“We’re also urging regulators to enforce that holiday companies and airlines hold their customers’ money in separate, regulated trust accounts until the date of travel.”
43% of consumers surveyed who accepted an RCN were not offered a full cash refund / Credit: Flickr
Why are RCNs not in the best interests of consumers?
Where consumers are not aware that RCNs can be exchanged for cash, RCNs hold them to one travel provider, which means that they don’t have their own cash in the bank to spend as and when they want, or put into a savings account earning interest.
RCNs remove the consumer’s ability to shop around for the best holiday deals and dates when they want to rebook.
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It’s also reported that 6% of all vouchers issued in the UK go completely unused.
What does the report recommend?
On the Beach has set out five recommendations in the white paper to help rebuild consumer confidence in the travel industry, which are:
Automatic Refunds: Automatically refund customers in cash when RCNs have been held for a year.
Proactive Contact: Customers holding RCNs from 2020 should be contacted proactively, notified of their rights and offered a full cash refund.
New RCNs Offered Fairly: Any new RCNs offered to customers who have holidays cancelled in the future must be accompanied with the alternative choice of a full cash refund, with equal prominence.
Financial Protection: Greater protections for customers’ money with ring-fenced trust accounts should be a requirement for all ATOL holders and airlines.
Greater Transparency: Regulators to report on the number and value of RCNs in circulation, allowing potential customers to make informed decisions on who to book future holidays with.
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You can find more information, and access advice and assistance regarding RCNs from OnTheBeach here.
Featured Image – Unsplash / Dan Gold
UK News
Lemn Sissay OBE pens powerful poem about Manchester City for Black History Month
Danny Jones
Lauded local poet Lemn Sissay MBE has penned a moving poem in collaboration with Manchester City, looking back on the club’s cultural past and key persons of colour for Black History Month.
Born in Orrell in the borough of Wigan, the published author, playwright, and BAFTA-nominated broadcaster has made a name as one of our region’s most notable wordsmiths, so it’s no wonder that he was selected by the Cityzens to touch on this particular topic.
Teaming up not only with Man City but the club’s first-ever Black footballer, Stan Horne, as well as other senior stars from the Maine Road days, all the way up to the modern Etihad era.
‘The Stadium Speaks’ by Lemn Sissay – a poem commissioned by Manchester City for Black History Month 2025
Entitled The Stadium Speaks, the public reading of the verses runs for just under two minutes, but even in the relatively short space of time, there is so much power in this poignant poem.
Roping in help from other past players like Nedum Onuoha, Shaun Wright-Phillips and Shaun Goater, as well as current stars like Ruben Dias, Khadija ‘Bunny’ Shaw and Jeremy Doku, each line leaves just as much impact as the last.
Just as importantly, they were also joined by Jahmal Williams-Thomas, City Matters’ Black and Mixed Heritage representative, Bing Findlater – the Official Supporter Club’s Equality and Inclusion Lead, as well as several other City fans and staff who work throughout the Eithad Campus.
Each individual who lends themselves to the performance delivers their part perfectly and from the heart; after all, Black culture isn’t something strictly celebrated during the month of October, but throughout communities all year round – as it should be.
Sissay, 58, clearly relished the chance to dive into how Greater Manchester‘s history intersects with not only football, but racism, equality, progress and more.
One stands and we all stand One falls and we all fall We are Manchester City And we stand tall
To celebrate Black History Month Manchester City Football Club commissioned me to write this poem to reflect on the club's journey from Maine Road to today. I have called it…
Speaking via a statement on the club website: “Manchester felt like home to me, the moment I stepped foot across the boundary. I came here very early on, when I think I was 13, I came to see Manchester City play. The first time I came to this city was to see City.
“I want the poem to be owned by the person who’s in the stand watching the game. And I wanted the poem to be owned by the person on the pitch who’s playing it. And I want them to feel proud reading it.”
The post goes on to reiterate that just like all teams throughout the football pyramid, racism and discrimination in all its forms should not and WILL not be tolerated.
Asking supporters to step up and speak as and when needed, City fans can report abuse and/or inappropriate behaviour to 07700151894, which will make security aware of what has been witnessed.
Feedback can also be shared anonymously by texting the specific block, row, seat number and a short description of the incident to the number; if in doubt, talk to a steward or police officer at the game.
Elsewhere, the official MCFC Supporter Charter sets out their zero-tolerance policy when it comes to discrimination, and fans can also report online discriminatory abuse they see targeted at Premier League players, managers, coaches, match officials and their families directly HERE.
Salford City set to reverse kit colour following clear-cut fan vote
Danny Jones
Salford City FC are set to make a historic change, or rather turn back time, as the Greater Manchester side looks set to change its main kit colour back to orange.
The Ammies are undergoing another big overhaul – the most significant since the ‘Class of 92’ bought the club back in 2014 – with supporters being invited to give their thoughts on the direction they want to see the club going in.
Currently sitting ninth in the third tier after making a positive start to the 2025/26 campaign, Salford City have been met not only with fresh investment in recent months but a fresh push for change from the ground up.
Including, as it turns out, the kit colour. After genuine calls to reverse the kit colour from the fans, the Salford board took a fan poll, with over three-quarters of all those who took part voting to return the City jersey to orange.
As you can see, 77.1% of Ammies confirmed that they were in favour of bringing back the predominantly orange and black shirt, shorts and socks; the switch is expected to happen before next season.
The League Two side has made it clear that promotion to the Championship is the big target over the next few years, and as the new consortium headed up by Gary Neville and David Beckham continues to try and transform the club once again, they’re looking to make big statements.
It doesn’t get much more foundational than restoring the orange shirts that Salford City wore for the best part of four decades prior to the initial takeover.
The decision itself comes after a thorough ‘heritage consultation’ process, where the older Neville brother and other key figures took supporter feedback into consideration, including the majority kit vote.
In terms of announcing the change, they’ve had plenty of fun revealing the outcome on social media, too.
Sharing a full statement on the club website, SCFC went on to detail that there is “significant work to be undertaken at the Peninsula Stadium to update cladding and seats, amongst other infrastructure upgrades that are already due to take place.”
Hoping to combine their “tangerine heritage with modern style to create a striking orange identity”, the overall brand aim is now simpler than ever: “when you see orange, you will know what it means. This is Salford. Proud. Unmistakable.”
Long-time supporter, Richard Kedzior – who also owns the recognisable orange and black flag that hangs in the west stand – said of the news: “I’m delighted that we’ve reverted back to orange, which over a 40-year period was the colour we were always associated with prior to the change to red.
“It’s a welcome return to tradition as well as giving us back our unique identity that will once again identify us all as proud supporters of Salford‘s premier football club.”
Before the reversal was fully confirmed, co-owner Neville discussed the potential change in a room full of passionate Salfordians.
Old Dead Tree fanzine committee member, Kev Wright, continued in the statement: “The orange kit represents Salford’s true identity. It sets us apart and reminds everyone that we are our own Club, not just a shadow of Manchester United.
“When we play in red, the comparisons are inevitable, and people can mistake us for something we’re not. Salford is different. It’s about local pride, about belonging to a community with its own history and its own future. Orange gives us a distinct voice and a colour we can call our own. It’s more than just a kit – it’s a statement that we are Salford, and proud!”
Signing off, fellow Ammie Deb Sculthorpe believes that this could be the ‘fresh start’ that the 85-year-old footballing outfit needs, adding that “timing is everything and now is the time.”
A further consultation is set to take place regarding the club crest, too, as some have also suggested reverting the modern logo to the old Salford Central-style badge, with more information to be shared as and when.
What do you make of the decision to swap the modern Salford red for Greater Manchester‘s second city classic orange strip, Ammies?