Loveholidays to refund £18m to 44,000 holidaymakers for coronavirus cancellations
The Competition and Markets Authority (CMA) received hundreds of complaints from people waiting to be refunded by Loveholidays, many of whom were told they’d only get their money back once Loveholidays had received cash from airlines. But legally, online travel agents need to provide refunds for cancelled trips regardless of whether they’ve received money back from suppliers, such as airlines.
Here at MoneySavingExpert.com, we also reported widespread issues with the online travel company over the summer, with droves of holidaymakers saying they’d been left in the dark about refunds and were struggling to contact the firm. Loveholidays even resigned from the Association of British Travel Agents (ABTA), which meant it no longer had to follow the trade body’s refund rules.
But the CMA has now secured a formal commitment from the holiday firm to refund customers. In total, £18 million will be refunded to 44,000 customers as part of this commitment, although £7 million of this has already been refunded to 20,000 holidaymakers. Loveholidays says it’s already refunded £205 million to 180,000 customers since March.
The firm must also regularly report its progress on providing refunds to the CMA, and the CMA warns that it will take Loveholidays to court if it doesn’t repay customers by the promised deadlines. See our Coronavirus Travel Rights guide for more on what you can do if your holiday’s cancelled.