The 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. I know 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. Further, the sector may avail of the Government wage support scheme and business supports particularly those aimed at small and medium enterprises. My Department is maintaining an open engagement with the travel trade industry and Minister Naughton is due to meet with representatives of the Irish Travel Agents Association to discuss ongoing issues.
