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.
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.