Dáil Éireann Debate, Thursday - 23 July 2020
83. Deputy Neale Richmond asked the Minister for Transport, Tourism and Sport if travel agencies are obliged to provide cash refunds as opposed to credit notes under the refund credit note scheme in circumstances in which they are still solvent; and if he will make a statement on the matter. [17786/20]
View answerThe Deputy is correct, under the EU Package Directive, travel agents and tour operators are required to provide a full cash refund to their customers if they cancel their booking in certain circumstances, and the travel restrictions imposed because of Covid-19 are such circumstances. Of course, the Deputy will understand that this obligation on travel agents and tour operators, at a time when there is very little incoming business, is causing severe cash flow difficulties for the sector, many of which are small, local high street businesses. For that reason, and without cutting across the consumer entitlements provided for in the Directive, the Government introduced a State guarantee for Refund Credit Notes issued for booking cancelled because of Covid-19. The customer is still entitled to cash, of course, but if they are willing to accept a Refund Credit Note, the State will guarantee its value if the issuer goes out of business, but otherwise the Note can be used against a new booking at another time or redeemed for cash from the issuer in 9 months. Each customer who chooses to accept the Refund Credit Note helps support a local business, without putting their consumer rights at risk. Of course, many people are in circumstances where they need their cash back immediately, and that remains their legal entitlement.
