Dáil Éireann Debate, Wednesday - 20 May 2020
1019. Deputy Mary Lou McDonald asked the Minister for Transport, Tourism and Sport if under the EU travel package directive persons who have had to cancel such travel bookings due to Covid-19 are entitled to a cash refund and that entitlement will continue to apply. [6419/20]
Amharc ar fhreagraI can confirm that the Deputy is correct: anyone who has cancelled a package holiday due to Covid-19 is entitled to a full cash refund under the EU Package Travel Directive, and there is no change to that entitlement.
What I am doing, however, following Government approval, is making legal provision for a Government-backed Refund Credit Note, which Irish-licensed travel agents and tour operators can offer their customers as full or part refund instead of cash, so long as the customer agrees. This Government guarantee protects the cash value of the credit note in the event that a travel company fails before the customer has had a chance to use it. The introduction of this provision, which will be temporary for so long as Covid-related travel restrictions are in place, is to provide a viable, safe alternative to cash refunds, in acknowledgement of the huge financial pressure that the travel trade sector is under. The Deputy will know that many travel agents are small, local enterprises who often have long-term, repeat business with their customers, and the objective is to provide some way of alleviating cash flow pressure without undermining consumer rights and protections.
