Filenews 4 July 2021 - by Theano Thiopoulou
One summer... seeing and doing will be for most this year's holidays and for some the solution will be last minute reservations, either in Cyprus or abroad and especially for the Greek islands.
But what if hotel reservations are made and in the end the traveller cancels or alters his travel plans and has second thoughts? In case of cancellation, a refund from a hotel or rented room can prove to be a particularly complicated affair, as policies vary considerably between companies.
Usually at this time cancellations may be due to health reasons or limitations related to COVID-19 disease or other similar reasons, as we are going through a period with many unstable factors. Of course, a trip outside Cyprus also requires air tickets and it is a matter of what happens if the trip is cancelled. Is the traveller entitled to a refund or not?
According to the information gathered by 'F' from the European Commission, there is useful information to keep in mind the traveller who postpones his trip.
The usual questions
The questions of concern to many consumers relate mainly to cancellations and changes due to concern about the epidemiological picture in the country of destination or the measures taken for the COVID 19 pandemic.
The text below lists the most common consumer questions, as recorded, on the EU website.
● Under EU consumer protection law, what are my rights if I have to cancel my booking because of this situation?
- EU consumer protection law does not regulate the conditions and consequences of cancelling individual services, such as booking accommodation. Consequently, the rights of the consumer depend on national contract law, including the rules on exceptional circumstances, as well as on the type and terms of the contract concluded, including the stated cancellation policy of the service provider (e.g. reservation with the possibility of a refund or not).
Under EU consumer protection law, entrepreneurs are obliged to act on the basis of professional conscientiousness and should not mislead consumers about their rights or make it difficult for consumers to exercise their rights. It is therefore expected that, in particular from 11 March 2020, consumers will be adequately informed of the possible consequences for their booking if either they have to cancel their trip or the provider has to cancel the stay.
National law may provide that, where cancellations or restrictions on the provision of services are due to circumstances of force majeure, such as the COVID-19 pandemic, consumers are not obliged to pay for the service, nor do they have the right to claim compensation for additional costs or damages that may result from that situation. National law may also provide that, in such cases, the consumer – who may be obliged to accept it – may be offered a voucher for the subsequent provision of the service for which he has paid in advance (including prepayments to secure the reservation).
Force majeure or other annulment clauses under the terms and conditions used by undertakings should not create a significant imbalance in the rights and obligations of the parties to the detriment of the consumer, taking into account the applicable national contract law.
Therefore, any condition of the contract which would oblige consumers who, as a result of the COVID-19 pandemic, cannot travel and use accommodation for which they have booked, to pay the full price to the accommodation provider could be considered unfair under Directive 93/13/EEC on unfair contract clauses and therefore non-binding on consumers.
Refund or coupons?
● Am I entitled to a refund? Should I accept alternatives such as coupons?
Contact your property provider or booking platform – preferably in writing – and try to find a reasonable solution to cancel your booking. Alternatives may include, for example, changing your booking for later dates. Keep a copy of any communication with the provider or platform.
Read the terms of the insurance (if you are insured for your trip), as this may cover cases of force majeure and entitle you to a full/partial refund. Check, however, if the pandemic is considered one of the exceptions.
In both cases you should not forget that these are exceptional circumstances, with a significant impact on businesses, especially small and medium-sized enterprises (SMEs). Act in good faith and be ready to accept alternatives if it is difficult to return the money in full and immediately. In the present exceptional circumstances, a compromise may be a better solution than a possible long-term conflict.
If you decide to accept a voucher, check the terms and conditions to make sure that it allows the money to be refunded no later than the expiry of the voucher and that it is protected from possible insolvency of the issuer.
If you have booked online, you can use the European Online Dispute Resolution Platform to submit your complaint in any language and in any EU country. If the trader agrees within 30 days, your complaint will be forwarded to an alternative dispute resolution body. The merchant can also contact you for a friendly settlement.
As a general rule, the law applicable to your dispute with the accommodation provider is the law of the country in which the accommodation service is provided.
Refund from airlines
Because travel is not only hotel booking but also airfare, the European Commission and national consumer protection authorities have called on airlines to improve the way they manage flight cancellations as part of the coronavirus pandemic. Airlines operating in the EU are invited to improve their practices, with the help of a list of measures drawn up by the Commission and the Consumer Protection Cooperation Network.
This action comes after a very large number of consumer complaints and is based on the results of a survey launched earlier this year to collect data on complaint management by 16 major airlines.
The analysis of the responses given highlighted a number of issues. Airlines operating in the EU must respect EU consumer protection law, from ensuring transparent communication to informing passengers in advance about their rights. In particular, they must provide a choice between a refund and a voucher and inform passengers that they have the right to exchange their vouchers for money at any time. Most of the airlines under investigation also did not return money to passengers within the 7-day period provided for by EU law. They must take steps to ensure that this deadline is respected for all new ticket bookings, whether purchased directly from airlines or through intermediaries, and to quickly absorb the accumulated outstanding refunds by 1 September 2021 at the latest.
The European Commission notes that in most cases where passengers booked flights through an intermediary, airlines do not inform passengers of the rights associated with cancellation, claiming that this responsibility lies with the ombudsman or that they do not have passenger contact details.
Passengers have the right to be informed of flights related to cancellation, regardless of whether they have booked tickets directly with the airline or through an intermediary. In most cases where passengers booked their flights through an intermediary, airlines do not accept immediate refund requests, claiming that this responsibility lies with the intermediary. Passengers have the right to refund money within the 7-day time limit, regardless of whether they have booked tickets directly with the airline or through an intermediary.
Acceptance of claims for direct compensation by the passenger, unless specific legislation applies (e.g. in the context of package travel) or where contractual arrangements between the parties concerned validly provide otherwise. This can be done by designing the booking process in a way that allows passengers to claim compensation directly from the airline when necessary.
Cumbersome airline procedures for passenger rights
Many airlines that issue vouchers and offer no refund at all have presented the right to compensation with less clarity or submitted the refund at the conclusion of a cumbersome refund process. Where cash compensation is not offered at all, is offered less overtly or is subject to a cumbersome procedure, the voucher is considered unacceptable and passengers still have the right to request a refund at any time. Choose the option to receive a refund as simple as choosing the coupon.
Some airlines do not allow vouchers imposed on passengers before the end of their validity period to be redeemed.
"The hotelier is gone!"
● I cannot contact my hosting provider. He's not answering my questions, what am I supposed to do?
- Accommodation providers/booking platforms are under a lot of pressure due to the many questions and complaints or requirements and it is possible that communication will take longer than expected. You should also be aware that they give priority to their customers according to the dates of bookings.
If the accommodation provider is established in another country, you can contact the European Consumer Centre in your country (ECC Net), which is able to help you settle your case with the accommodation provider or booking platform if necessary.
If you used a credit card to pay for the service, contact your credit card company to check if the "reverse charge" policy applies.
