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We would like to take the opportunity at this unprecedented time to explain, from the tour operators’ and travel agents’ point of view, the impact of the current COVID-19 situation so that you have an understanding of how this will affect the operator if you opt for a refund rather than re-booking, in the hope that you will re-book and help to keep the travel industry alive.

What costs are tour operators currently incurring?

Clients that were already travelling:

Tour operators have been working flat-out to repatriate their clients, which has proved extremely challenging as countries have now restricted flights and closed borders. This is their duty as a tour operator, but it isn’t free or cheap to do.

Unless they are rebooked on to the same airline, they incur the costs of one-way, high-cost tickets.

Often the airline that clients had travelled with have been fully-booked, requiring new tickets to be purchased on different airlines or even different cabin classes.

Many borders closed with only two to three days’ notice, meaning that availability was very poor and last minute.

Operators can claim a partial refund or credit against the leg that hasn’t been used but this amounts to often less than £100, when new tickets we are paying for are anything between £900 and £2,500 per person.

Where operators have been unable or delayed in getting clients home, they have had to front the costs of hotels and expenses.

This has so far cost tour operators a huge amount of money along with lost services.

Some hotels are being flexible and offering rebook or refund, as are transfer and tour suppliers but elements such as National Park fees, taxes and permits are all non-refundable and operators won’t be able to claim those back so they are a loss to the business.

Cancellations of future holidays:

When a client cancels due to the fact that they can’t travel due to coronavirus, the cost of this to the tour operator as a business isn’t just the loss of commission or business – these cancellations cost them a significant amount of money.

Here is why:

Most trips have a number of flights involved, and with long-haul trips about 30-40% of the cost is made up of international and domestic flights, which will already have been paid for.

The current policies for airlines such as British Airways mean that clients can rebook their flights free of charge or can claim a voucher for future travel with no name changes permitted. The airlines are not currently offering refunds – this includes all international and domestic carriers.

If you claims a full refund from a tour operator, they have to pay out on money that they won’t receive back.

Hotels and services are generally being quite flexible, but permits, local taxes and National park fees are all non-refundable, despite having already been paid out and not being used.

So it isn’t just about the time and effort that went into booking these holidays that the tour operators lose, it is much more than that – they stand to make a physical loss on each booking that cancels, of a substantial amount.

This is the situation for many tour operators out there, big and small.

Impact on suppliers and communities:

This also affects the local communities and suppliers in the destination country.

Many of the communities and people in overseas countries rely on the income from tourism.

The current situation has devastated many communities and tour operators are keen to bring back tourism to them as soon as possible.

The most effective way to do this is to send everyone away next year if they were due to travel this year – alongside all those who will be itching to travel once this nightmare is over!

But, is my money safe?

Yes. Travel from the UK and Europe is heavily regulated and there is a piece of legislation called the Package Travel Regulations that UK/Europe-based travel companies have to adhere to. This includes ensuring that your money is well protected.

In the UK, when you book a holiday through a tour operator or travel agent, your money is protected in various ways, including the ATOL scheme. ATOL is run by the Civil Aviation Authority which is ultimately a part of the Department for Transport.

I’d still like to cancel and receive a refund.

Ultimately this is your choice and your right. We understand that in these exceptional times that you may need that money back in your bank account.

However, bear in mind that if a large number of people request a refund from a particular tour operator, there is a real risk of that operator becoming bankrupt and falling into administration.

Whilst your money is, ultimately, protected, under these circumstances your refund will be delayed significantly. As an example, the refunds from Thomas Cook’s bankruptcy have taken months to process – imagine how long multiple business failures would take to process and refund.

Final message

We encourage you to seriously consider the implications of cancellation over re-booking, and the impact on the livelihoods of people throughout the supply chain, and the losses that they stand to take.

Please do everything in your power to protect the amazing tourism industry, and the people in it, both near and far.

Thank you.