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What happens if my Spain holiday is cancelled?

Beachgoers wear face masks in Spain - Getty
Beachgoers wear face masks in Spain - Getty

The Government’s imposition of an immediate two-week quarantine for anyone returning home from Spain and its islands, combined with the Foreign Office advising against all but essential travel to the country, is a bitter blow to millions of holidaymakers and the travel industry in general.

Those who have package holidays to Spain booked in the next few weeks are almost certain to have them cancelled. The developments are also bound to have an impact on confidence and the number of people who are prepared to travel to other destinations in such an uncertain climate. But the situation is complicated. Here is our guide to those affected by the new rules.

What if I want to cancel?

If you have a holiday booked which departs in the next three or four weeks and you don’t want to go, don’t cancel your flight or holiday unilaterally. You would most likely lose all the money you have paid towards it. Always wait until the operator or airline does the cancelling, then they are liable to refund you (see below).

If, like many people, you have booked your accommodation independently of your travel arrangements, you may not be entitled to a refund. Some online agents, such as Expedia and Booking.com, are allowing refunds in some circumstances, but otherwise, legally speaking, you have entered a contract with the accommodation and if you don’t show up, you still have to pay. The same is true if you have already paid for things such as car rental and rail tickets. You will have to contact each company directly to see if they are willing to offer a refund or for you to re-book for a later date as a goodwill gesture.

What if my holiday is cancelled?

Tour operators are effectively obliged to cancel holidays to destinations where the Foreign Office is advising against travel, and most will cancel when quarantine rules are reimposed. Under the EU Package Travel Directive, if an operator cancels your holiday, you have the right to a full refund within 14 days. Meanwhile, EU Regulation 261/2004 requires airlines to refund cancelled flights within seven days. Given the sheer number of cancellations and the stress companies have been under during the pandemic, these time limits are impracticable in most cases and many people are waiting months for their money or are being fobbed off with vouchers.

The good news last week was that the Government finally confirmed that the specially designed Refund Credit Notes (RCN) which can be offered by operators which are Atol-bonded and Abta would be legally protected if the company went out of business. These RCNs entitle you to rebook a holiday at a future date or receive a cash refund at the expiry date of the note. If you are happy to accept one of these then it will normally be issued far more quickly than a cash refund. There is more information on this at abta.com/coronavirus.

Will my money be safe?

These are extremely tough times for the travel industry and they have just got a whole lot worse. You need to be sure that your money will be protected in case your operator goes out of business before you travel, or while you are away. So, before you book, check that it is a member of the official Atol bonding scheme (or a similar approved scheme).

Should I avoid booking a holiday to Spain?

Yes. Hold off at least until the quarantine requirement is removed. If you do decide to book for a departure several weeks ahead, check how flexible the operator’s cancellation and postponement policy is. Some will allow you to make changes cheaply, or at no cost, in case something happens which means you want to postpone your trip or abandon it altogether. For example, both BA Holidays and Tui have introduced more flexible policies. Also think hard before you make independent arrangements, even for a few weeks in advance. You might find a flight so cheap that it wouldn’t matter very much if you had to abandon it. But make sure you can cancel your hotel or villa without paying a high penalty.