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One of Britain's biggest online travel agents has ditched its Association of British Travel Agents membership over the association's refund policy

by Jillian Ogle (2020-09-24)


One of Britain's biggest online travel agents has ditched its Association of British Travel Agents membership over the association's refund policy.

On the Beach resigned its membership after ABTA put its foot down and reiterated its policy that members must offer full refunds if the Foreign and Commonwealth Office advises against all but essential travel.

An On the Beach spokesperson said: 'The travel industry is facing unprecedented challenges, and changes are inevitable as businesses and trade organisations adapt. 

'OTB has been an ABTA member since 2004, however the current circumstances have presented difficult decisions, and different legal interpretations on complex matters.'

Refund rules: On the Beach has refused to offer refunds to Spanish holidaymakers who didn't travel to Spain after the UK government advised them not to

It said that as of last week, OTB and its subsidiary Sunshine.co.uk have informed ABTA that they will resign their memberships.

Rory Boland, editor of Which?

Travel slammed OTB for its stance on refunds and cautioned travellers about booking with operators refusing refunds.   

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He said: 'Travel operators are facing a serious financial crisis but they are also facing a crisis of trust - and OTB's actions will only further diminish confidence that it's possible to book a holiday without the risk of losing your money.

'Anyone who has their hotel cancelled as part of a package holiday is due a refund for the full cost of the holiday under the Package Travel Regulations, but holidaymakers who decide not to travel because of government advice might struggle to get their money back. 

'We would currently advise anyone against booking a holiday with any travel operator refusing to allow customers refunds in these circumstances and encourage people struggling to get a refund not to take no for an answer.

'If enough customers join us in telling On the Beach that its approach is unacceptable, the company may be forced to reconsider and https://www.invertircripto.com pay up to those who are owed money.'

We would currently advise anyone against booking a holiday with any travel operator refusing to allow customers refunds in these circumstances and encourage people struggling to get a refund not to take no for an answer.   Rory Boland, Editor of Which?

Travel

The OTB spokesperson added that both Sunshine.co.uk and OTB travellers will still be financially protected by the ATOL scheme and OTB's ring-fenced trust account.

In a trading update in April, OTB said: 'OTB is also the only listed UK travel business that operates a fully ringfenced customer trust account in which customer funds are held until the point of travel.

'Therefore the Group, unlike the majority of online travel agents, tour operators and airlines, does not rely on cash received for forward bookings to trade.

'Monies that have been received for holidays that are cancelled by a closure of airspace can be repaid to customers in cash with limited impact on the Group's working capital.'

An OTB spokesperson further explained: 'For non-flight bookings, we have replaced ABTA protection with an insurance policy arranged by International Passenger Protection Limited.