Tui (LON: TUI) will be refunding all cancelled holiday packages by the end of September.
The Competition and Markets Authority (CMA) announced this morning that after an investigation following thousands of complaints, the holidaymaker will be refunding within the allotted time.
Amid the Coronavirus crisis, many holiday operators have struggled to refund customers on time due to a large number of cancellations.
The chief executive of the CMA said:
”It’s absolutely essential that people have trust and confidence when booking package holidays and know that if a cancellation is necessary as a result of coronavirus, businesses will give them a full, prompt refund. The CMA’s action ensures that Tui UK customers will get their refunds by the end of the month.”
As a result of this morning’s news, shares in the company (LON: TUI) fell 6.6%.
‘’TUI is facing a perfect storm of a dramatic fall in demand for winter holidays and a scramble from thousands of consumers desperate to get a refund on spring and summer cancellations,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.
“The travel company has now promised to clear a backlog of refunds by the end of the month following an investigation by the UK’s competition authority.
“That’s clearly left TUI seriously out of pocket, given that the company already suffered a €1.1bn loss in the second quarter of this year,” she added.