Holidaymakers may have to wait 18 months for hotel refunds in France and Portugal

UK Holidaymakers have been warned they will have to wait up to 18 months for refunds on cancelled trips to Portugal, Italy or France under an EU-approved scheme.

Travel experts said several countries have issued decrees meaning hotels booked directly by travellers can offer credit vouchers instead of cash refunds for holidays scheduled between March and September.

These can be valid until December 31, 2021, at which point the money would be returned to the holidaymaker.

The global lockdown has made international travel largely impossible, with thousands of summer holidays cancelled or in doubt.

This has placed incredible strain on the tourism industry, with fears that the deluge of refund requests could cause firms to collapse.

France and Italy are among the countries which have backed vouchers, while the EU Commission issued guidance last month which urged states to make the vouchers “attractive” to consumers by guaranteeing them in the event a firm fails.

The Association of British Travel Agents has repeatedly called on the Government to support the industry by introducing measures which strike a balance between protecting consumer rights and preventing an “industry-wide collapse”.

Martyn James, of consumer complaints service Resolver, said that any changes do not affect travellers’ right to a refund if package holidays or flights are cancelled.

However, he warned that those who booked a hotel directly or via a third party booking website could find that they have to accept a voucher.

“We are about to enter a whole world of confusion about what travellers are and aren’t entitled to,” he said.

“If you do accept a voucher, ask the hotel to send it over to confirm what your rights are and if in doubt ask them to confirm in writing what you are entitled to.”

Paul Charles, a travel expert at consultancy the PC Agency, said the Government should step in to protect the industry.

He said: “Travel companies are trying to restore confidence in the industry, which is something the Government is not doing.

“They say they are following science. At some point they need to use their own intelligence to open up the travel industry.”

Among the policies which have been discussed to support the industry are so-called “air bridges”, which would bypass the need for travellers to quarantine.

Under the terms of the changed policies, most travellers with hotel bookings would have to wait until the end of next year to claim a full refund, but there are exemptions. For example, in Portugal anyone who is unemployed can claim a cash refund before the end of September.

Under EU law customers should be refunded for a cancelled flight within seven days or a cancelled packaged holiday within 14 days and vouchers can only be given if the traveller agrees.

The EU Commission said last month that if a large number of travel firms collapsed there was a risk of people not getting their money back and that vouchers could be an alternative.

Its guidance said that vouchers should be protected, either by the private or public sector, and should ideally be valid for no longer than 12 months.

Meanwhile, travel firms in the UK have attempted to restart domestic holidays by offering bookings for the late summer with highly flexible cancellation policies.

Secret Escapes emailed customers saying that for bookings within the UK from August onwards travellers can cancel up to eight days before. Travel firm Kuoni has launched its first ever series of UK-based holidays.

It is currently against the lockdown rules to stay at a location away from your home, including holiday accommodation. The Government has previously said it will encourage staycations as soon as it is safe to do so.