Britain's travel agents are issuing a desperate plea for a major overhaul of the nation's holiday refund rules, branding the current system as fundamentally "unfit for purpose" and a threat to the entire industry's survival.
The call for change, led by the UK's largest travel association, targets the Package Travel Regulations (PTRs) 2018. These rules, while designed to protect consumers, have created a financial nightmare for operators since the pandemic. Agents are now forced to refund customers within 14 days for cancelled trips, a timeframe they argue is impossible to meet while they wait for money to trickle back from airlines, hotels, and overseas suppliers.
A System in Crisis
The current regulations have created a perfect storm of financial pressure. Travel companies are effectively acting as banks, paying out refunds from their own reserves long before they recoup the costs. This cash flow crisis has pushed many otherwise healthy businesses to the brink of collapse.
"The regulations are well-intentioned but have had unintended consequences," argues a leading industry figure. "We're seeing good companies fail not because they aren't viable, but because they can't comply with a refund timeline that doesn't match commercial reality."
The Proposed Solution: A Refund Credit Note
The industry's proposed solution is the widespread adoption of a legally binding Refund Credit Note (RCN). This would act as a guaranteed IOU, protecting the customer's money while giving travel firms a realistic 12-month window to process the full cash refund.
This system would offer dual benefits:
- Consumer Protection: The customer's money remains 100% financially protected, just as it is now.
- Industry Stability: It provides essential breathing room for agents to reclaim funds from complex international supply chains without facing insolvency.
Protecting the Future of UK Travel
This isn't just about protecting businesses; it's about safeguarding the entire travel ecosystem for UK holidaymakers. A more stable industry means greater choice, more robust consumer protection in the long term, and a healthier market for future bookings.
The message from travel agents is clear: without modernising these regulations, the very companies that are supposed to be protected by them may not be around to book your next holiday with.
