Teletext Holidays and Alpharooms to pay refunds over cancelled trips

Package travel companies Teletext Holidays and Alpharooms have officially agreed to return £ 7 million to customers whose holidays have been canceled due to the Covid-19 pandemic.

The parent company has signed a commitment to process all refunds by the end of August. Customers wait the longest to get their money first.

The bosses also vowed to ensure that all future refunds for canceled holidays due to the pandemic are made within 14 days.

Failure to comply can lead to legal action and sanctions.

It follows similar agreements by LoveHolidays, Lastminute.com, Virgin Holidays and Tui UK after thousands of customers complained that the companies failed to reimburse them for canceled trips.

The competition watchdog launched an investigation into Teletext Holidays in February over the missing £ 7 million and demanded repayment of the money.

In late April, the CMA announced parent company Truly Holdings that it was preparing to take it to court, unless an undertaking was signed.

Andrea Coscelli, General Manager of the CMA, said: “There is no excuse for travel agents to delay reimbursement of legally owed customers, even at these extraordinary times. Businesses should do the right thing without the threat of legal action.

“As a result of our work, customers who have waited many months for their money from Teletext Holidays and Alpharooms are now receiving a full refund.

“With international travel resuming and many people considering long-awaited overseas travel, all package tour companies must provide refunds within 14 days of the due date and should also provide clear cancellation information so that no one goes through this unnecessary check.”

Teletext must also provide the CMA with regular reports on the progress of their repayments.

Special refund pages are created on the company’s websites. Those who have received credits but have not yet used them will instead be offered the option of a cash refund instead.

The travel sector was one of the hardest hit areas during the pandemic and has been the most scrutinized by the CMA. She wrote to more than 100 companies reminding them of their responsibility to legally process all refunds within 14 days for any cancellations.

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