The travel sector has been one of the hardest hit during the pandemic and has faced the most scrutiny from the CMA, which wrote to more than 100 firms reminding them of their responsibility to process all refunds within 14 days by law for any cancellations. Teletext Holidays faces legal action unless it pays back £7m to customers whose holidays were cancelled owing to the pandemic, a watchdog has said. Teletext will also have to provide the CMA with regular reports on the progress of its repayments.ĭedicated pages for refunds will be created on the company’s websites and those who received credit notes but not yet used them will also be offered the opportunity to receive a cash refund instead. “With international travel resuming and many people considering long-awaited trips abroad, all package holiday firms must give refunds within 14 days where these are due, and should also provide clear cancellation information so that no one else is unnecessarily put through this ordeal.”
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“As a result of our work, customers who have waited many months for their money back from Teletext Holidays and Alpharooms will now receive a full refund. Our price match promise means we can provide better value.
Companies should be doing the right thing without the threat of court action. If youve found a great discount on Teletext Holidays for your 2019 holiday, let us know about it. The TTA said it was not impacted financially if a member was unable to pay creditors and stressed no other members would be affected.At the end of April the CMA informed parent company Truly Holdings that it was preparing to take them to court unless an undertaking was signed.Īndrea Coscelli, chief executive of the CMA, said: “There’s no excuse for travel firms to delay refunding customers what they are legally owed, even in these extraordinary times. No accommodation-only bookings have been fulfilled since October 25 and all customers have been offered a refund. Truly Travel’s sister company Alpha Holidays, which traded as and was bought by the group in 2013, also had its TTA membership terminated.
Bookings, made through a third-party supplier, were then paid and reinstated by TTA Travel. The company said seven customers had arrived in resort to find their bookings had been cancelled by hotels since October 29. He added: “A communication was sent to all consumers and Truly Travel suppliers, reassuring them holidays will go ahead as planned and that bookings are now financially protected through TTA Travel.” TTNG chief executive Gary Lewis said Truly Travel, “like many travel businesses”, had been “severely impacted” by the pandemic. As of October 19, the company owed £1.2 million in refunds and had paid back £10.8 million since Covid struck. The Teletext brand is subject to legal action from the Competition and Markets Authority (CMA) over the failure of Truly Holdings to pay refunds on cancelled package holidays. Teletext Holidays is an online travel agent and started out on the ITV Teletext service, becoming known as a place to book a cheap, last-minute holiday. Flight-inclusive holidays will continue to go ahead, with TTA Travel collecting balances and paying the relevant suppliers. TTNG did not reveal the number of bookings affected but said all had been recontracted with TTA Travel, its fulfilment company. It has not been able to take new bookings since its membership was closed on October 29. Truly Travel, which became Teletext Holidays’ sole supplier of holiday offers and advertising in 2013, had traded under the Atol licence provided by TTA. TTA, part of The Travel Network Group (TTNG), said liquidators had been appointed because of “ongoing challenges to meet existing non-travel creditors”.
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The move could result in the end of the Teletext Holidays brand, which was founded in 1992 and became one of the best-known mainstream holiday providers on TV in the 1980s and 1990s. Liquidators have been appointed to close down Teletext Holidays parent Truly Travel following the termination of its Travel Trust Association (TTA) membership on Friday. The CMA will take Teletext Holidays to court unless the firm takes urgent action to improve how it handles refunds to package holiday customers.
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