How can Cottages.com refuse a refund when travel is banned?

  • 5/1/2020
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Cottages.com, a booking platform connecting UK property owners and holidaymakers, seems to be trying to maximise revenues from the current situation. Travel is banned, but it is refusing to refund cancelled holidays, even though they have not passed on the payments to owners. Instead, they are issuing vouchers which must be used to rebook by the end of August or else they become worthless. This is pressuring people to commit to new dates when they don’t know when lockdown will end, while elderly or vulnerable people may not be able to travel for some time. APS, London Scores of readers have written in about this intransigent policy. Legally, if not morally, they can refuse a refund, depending on the terms and conditions, because its bookings are not protected by the Package Travel Regulations. Its terms absolve itself and property owners from liability if the contract can’t be fulfilled because of events beyond its control. Although pestilence is not listed, the catch-all “other circumstances” may cover it. Morally, it’s another matter. Cottages.com is part of Vacation Rentals Ltd which was bought by a private equity firm in 2018 and has an annual turnover of around £90mSince owners do not receive the full rental payment until the holiday has ended, the company is sitting on millions at the expense of owners and customers. It’s not unusual in insisting on vouchers – many other holiday let companies are doing the same and all are under pressure to compromise. But it has gone out on a limb by insisting the vouchers are used within four months, especially as some customers say there are no available dates for the property they had booked. And those who do find a suitable slot will have to pay more if the seasonal rate is higher. It has introduced a “Price match promise” but only for trips rebooked for the equivalent time next year which, given the number of rebookings, is an elusive gesture The company has since extended the expiry date of vouchers until the end of December and the holiday they are used for must be taken before the end of next year. It tells the Observer: “We are discussing specific concerns with our customers. We are dealing with an unprecedented demand in our call centres, but are doing everything we can to help customers rebook.” ABTA, the industry regulator, says it will contact any member company “if it regards its actions as being in breach of its code of conduct”. If you need help email Anna Tims at your.problems@observer.co.uk. Include an address and phone number. Submission and publication are subject to our terms and conditions

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