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
Tributes pour in for Manchester City legend and former chairman Franny Lee
Danny Jones
Tributes are being paid to Manchester City legend and former chairman Francis ‘Franny’ Lee CBE, who has passed away aged 79.
The ex-Man City, Bolton Wanderers, Derby County and England star is said to have passed away in the early hours on Monday morning, 2 October, following a long battle with cancer.
Speaking via a club statement, his wife Gill along with children Charlotte, Jonny and Nik said, “He will be sorely missed and would like to thank everyone for their kind words”.
Both Manchester teams led tributes to the British footballing legend, with avid City fan Liam Gallagher and countless others joining in paying their respects.
Sending our sincere condolences to the loved ones of Francis and everyone connected with Manchester City at this terribly sad time 🙏
We are saddened to learn of the passing of Francis Lee at the age of 79. Franny won 27 caps and scored ten goals for the #ThreeLions between 1968 and 1972.
Social media has been filled with tributes following news of Franny Lee’s death.
Franny Lee scored 148 goals in 330 appearances during eight-year City, helping the club win multiple honours during their first periods of success, including the old First Division title back in 1968.
Born in Lancashire and starting out elsewhere in Greater Manchester at Bolton Wanderers, he also went on to play for Derby following his time with the Blues, helping the Rams to their second-ever title in 1975.
The striker also had 27 caps for England between 1968–1972, scoring 10 goals and winning FA Cup, League Cup, European Cup Winners’ Cup and the Charity Shield twice at club level during that period.
Honouring their former centre-forward who went on to serve as Chairman for four years from 1994 onwards, the club statement read, “It is with the deepest sadness and heaviest of hearts we announce the passing of former Manchester City player and Chairman Francis Lee, aged 79”, adding that flags around the Etihad Campus are flying at half-mast.
His first club, Bolton, said of the former marksman, “All at Bolton Wanderers are saddened to learn of the passing of former forward, Francis Lee. The thoughts of everyone at the club are with Francis’ family, friends and loved ones at this difficult time.”
As for legacy as for his time in Blue, the club had already planned to immortalise Lee prior to his death, announcing the erection of a statue back in May 2022, the reveal date of which will no doubt be moved up following his passing.
The club has also assured that “more tributes will follow in the coming days.”
Rest in peace to a legend.
Featured Image — Manchester City/England/Bolton Wanderers (via Twitter)
UK News
Northern Quarter’s iconic ‘Big Horn’ could be coming back to Tib Street
Danny Jones
Manchester is famous for many iconic landmarks, with many of them situated in the legendary district of the Northern Quarter, and while it might not be there anymore, there is one that still stands firm and fondly in our memories: ‘The Big Horn’.
So much so, in fact, that it might even be coming back.
If you ever walked down Tib Street during some time between 1999 and 2017, you will have come across the rather odd-looking sculpture simply known as The Big Horn, created by artist David Kemp as part of his ‘Unsound Instruments’ series.
Erected just before the millennium, the unique piece of artwork was built as a symbol of growth in the Northern Quarter, an area of Manchester that has continued to be a melting pot for local history, culture and progress. Unfortunately, however, with that progress often comes the old making way for the new.
The trombone-shaped was sadly removed from its home on the corner of Tib and Church Street six years ago after it was announced that the land it sat on was to become a new apartment block developed by Salford-born billionaire and Betfred founder, Fred Done.
After the sculpture was pulled down, it was donated to Manchester City Council and has been sitting in storage ever since, but with NQ continuing to be a hive of art, creativity and industry — three things that are at the core of Manchester as a whole — many have been calling for it’s return.
It’s over half a decade since we last saw The Big Horn in this iconic part of town, but thanks to a new planning application by those passionate about maintaining and restoring local culture, it is now on the verge of making a comeback just around the corner.
Being driven by property developers Bruntwood and already in the consultation stage, a proposal, heritage statement and even details surrounding where the sculpture could be reinstated have all been drawn up and submitted — it’s now just a case of waiting for the green light.
At one point, The Big Horn was a signpost that let you know you had arrived in Northern Quarter. (Credit: David Dixon)
With the plan to reaffix the horn to the side of another nearby cultural hotspot, Afflecks, which bears just as much significance on the area’s music and art scene, The Big Horn’s return could be imminent and attract a whole new set of eyes, as well loom large in those that previously admired it once again.
Set to measure up at 5.3 metres off the ground and 12.8m above street level at its highest point, not to mention be attached to one of Manchester‘s most beloved buildings, the sculpture could be set to boast more pride of place than ever.
The council application was submitted on 15 September and those interested in having their say can get involved with the consultation right up until 13 October.
You can play your part in saving a piece of Manc history and bringing The Big Horn back to the Northern Quarter HERE.