The fall in demand and coronavirus causing escalation in claims.

The fall in demand and coronavirus causing escalation in claims. 01-08-2019

01-08-2019David Arquimbau Sintes - jma - E

A huge slump in holiday bookings and an avalanche of flight and package tour cancellations has led to a spike in compensation claims.

But Tour Operators are allegedly refusing to give refunds to people are unable to travel because of coronavirus restrictions.

"Tour operators are reluctant to pay, which is why there are many claims against Consumer Agencies as a cause of force majeure. The logical thing is to come to an agreement and understand what is happening, more at a juncture that affects all the productive sectors,” said Aviba.

Hotel reservations

Tourist Groups in Germany and the UK, have allegedly contacted hoteliers in Majorca and the rest of the Balearic Islands claiming that Summer 2020 contracts, which were signed last year, are not valid in the current circumstances.

"We understand that the current situation is not positive for anyone, but the cancellation or renegotiation of guarantee contracts is a serious economic blow for companies, which are currently experiencing a critical situation," said a spokesperson for Hotels in Majorca.

Guaranteed contracts between hoteliers and tour operators ensure that, no matter what, a minimum number of beds are guaranteed in the months of May, June, July and August.

"That the Tour Operators can cancel them unilaterally and not fulfil the required commitment is a very strong economic blow for small and medium chains. The offseason has already felt the direct impact of coronavirus and what happens in the summer months will be key to the survival of many hotel companies in the Islands,” said a spokesperson for Hotels in Majorca.

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Marcos / Hace 5 months

Some tour operators, like Jet 2, sold holidays with 0 deposits or low deposits. Virtually all those bookings have cancelled. Holidays due to depart within the restriction dates ARE being refunded by the TO’s in full. No people are booking holidays. The TO’s are paying out money with none coming in. IF the TO’s were to pay the Hoteliers for holidays that don’t happen they, the TO,s would simply go bust whilst the Hoteliers would receive funds but at reduced costs (empty rooms don’t need cleaning).

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Steve Kane / Hace 6 months

If Tour operators are being so Blatant with the Hotels in Majorca then I am sorry but the Hotels MUST respond in a way that when things get back to normal they should UP the cost to the Tour operators, The Tour Operators need the hotel just as much as the Hotels need the Tour Operators . So Hotels on the Island stick together and shoe the Tour Operators that they can not BULLY YOU ALL

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OSN / Hace 6 months

It's not good obviously, but anyone in the travel business (and many others) are looking at a very real risk of going bust very quickly, so they are on survival mode. I'm not excusing it of course, but if you run a travel firm you may be looking at a question of closing the doors and firing 20,000 people if you have to start giving money back. Tough times, tough decisions.

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