ABTA Warns UK’s Travel Industry Can Collapse Soon

ABTA Warns UK’s Travel Industry Can Collapse Soon

08/04/2020 0 By M Zaman

UK’s travel industry is likelihood to face further catastrophe, without government support. The Association of British Travel Agents or ABTA warns of any upcoming damages and businesses can collapse soon with no support.

The agency worries that customers looking for cancellation of holidays, will face a lengthy delays to get a refund. Unless, travel firms are facing to become bankrupt soon.

Most recently, other EU countries France, Belgium, Denmark, Italy are already following necessary initiatives to protect the industry. But, there are only quite a few steps from the UK government.

Alternatively, “ABTA has again written to Government Ministers, including the office of the Prime Minister”.

It urges to the government to take necessary actions as early as possible to prevent any upcoming damages.

An easyJet flight

An easyJet flight (Image: easyJet)

ABTA’s Chief Executive Mark Tanzer states: “The global pandemic has put enormous financial strain on tour operators and travel agents, with businesses seeing a collapse in sales while facing immediate repatriation costs and refund demands for cancelled holidays on a scale that is unmanageable in the short term.

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“These businesses are themselves waiting for refunds from hotels and airlines and without this money, they simply do not have the cash to provide refunds to customers within 14 days.

Suggestion From ABTA To Avoid Any Collapse Very Soon For The UK’s Travel Industry

ABTA suggest temporary amendments to the Package Travel Regulations:

  1. That the 14-day window for refund payments should be extended to a 4-month period.
  2. That Government should confirm the ongoing protection of refund credits.
  3. That where suppliers (e.g. hotels or airlines) cannot or will not refund tour operators, there should be an emergency government consumer hardship fund to help fulfil refund payments.
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ABTA also calls “the Government to take strong enforcement action against airlines who flout the law by withholding refunds due following the cancellation of flights.”

British Pound

British Pound (Image: Pixabay)

Meanwhile, IATA also warns European airlines lose nearly $76 billion revenues in 2020 for ongoing COVID-19 or Coronavirus pandemic crisis globally.

On the other hand, UK’s leading airline easyJet secures £600m worth of loan from the government to avoid any further damages.

Also, British Airways suspends nearly tens of thousands of employees from it global operation.

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