Dáil Éireann Debate, Tuesday - 14 July 2020
234. Deputy Richard Boyd Barrett asked the Minister for Transport, Tourism and Sport if he will advise travel agents that are liable for refunding clients who have booked holidays but cannot travel due to public health advice in circumstances in which the airline and hoteliers will not refund, in view of the fact that flights are running and the agent will be out of pocket, jeopardising its business. [15472/20]
View answerThe Deputy raises an important issue for Irish licensed travel agents and tour operators, many of which are small, local high street businesses. Under the EU Package Travel Directive, travel agents and tour operators are required to provide their customers with a full cash refund when a holiday is cancelled due to exceptional circumstances, which of course Covid is. However, the travel agents and tour operators are having difficulties securing refunds themselves from their suppliers to pass onto their customers, and indeed where flights take place - irrespective whether a travel agent's customer has cancelled - the airlines are not obligated to provide a refund at all. This is causing considerable financial strain in the sector.
The State is providing financial backing for a Refund Credit Note scheme, under which travel agents and tour operators can issue credit notes to their customers instead of cash - if the customer agrees - and the financial value of that credit note is guaranteed by the State. This is a measure designed to give assurance to consumers about the safety of accepting a credit note, and help the industry alleviate the cash flow drain it is experiencing. The challenge is to ensure that consumer rights are protected and at the same time that viable business and their workers are kept going.
My Department is maintaining an open engagement with the industry body, the Irish Travel Agents Association, with a view to seeing what else can be done to support the businesses and protect the jobs.
