...AND THE OUTLOOK IS FAIR! A campaign is under way to help holiday and travel firms improve the clarity of their terms and conditions ‘A clear understanding of terms and conditions can help foster an open and responsive relationship that gives customers peace of mind and boosts businesses’ As holidaymakers get ready to make the most of summer, the Competition and Markets Authority (CMA) is asking holiday and travel businesses to ‘check in’ and ensure they are using fair customer contracts. It has launched a campaign called Small Print, Big Difference to help firms improve the clarity of their terms and conditions. Run in partnership with the Association of British Travel Agents (ABTA), UKHospitality and the Association of Independent Tour Operators (AITO), the campaign also encourages businesses to be upfront and clear about their charges and fees, especially in the event of a customer cancellation. ‘It is vitally important that customers have full confidence when they make a booking with a hotel, restaurant, B&B or other hospitality business,’ said Kate Nicholls, chief executive of UKHospitality. ‘A clear understanding of terms and conditions can help foster an open and responsive relationship that gives customers peace of mind and boosts businesses.’ People in the UK spent an estimated £81bn on holidays at home and abroad in the year to April 2018. But what can they expect if they have to cancel their plans because of unforeseen circumstances, such as an illness or death in the family? Under consumer law, businesses may be entitled to ask customers to pay a cancellation fee to cover their losses, but the amount they keep must be in proportion to what they are losing. Cancellation terms that don’t follow this approach are likely to be unfair and firms won’t be able to rely on them to resolve claims or disputes with customers. ‘There are circumstances when a cancellation charge may apply, but it must genuinely reflect the costs of cancellations faced by the travel company,’ said Mark Tanzer, chief executive of ABTA. ‘We always encourage people to take out travel insurance as soon as they book their holiday, which should protect them from the costs of most cancellations.’ A term can be legally unfair if it gives the business an unfair advantage – for example, if a company takes a large, upfront deposit and refuses to refund any of the customer’s money if they cancel, regardless of the amount the business has lost or the reason for the customer cancelling. A term is more likely to be fair if it clearly explains how a charge reflects what a business will genuinely lose from a cancellation, and if the way this charge is calculated is reasonable. Derek Moore, chairman of specialist travel association AITO, said: ‘With myriad travel organisers – many from outside the UK and EU – targeting UK consumers, understandable and transparent conditions have never been more important.’ As well as a new campaign website, the CMA has produced detailed guidance to help businesses and their legal teams understand how to apply the law. Credit: Paul Latham, CMA director of strategy and communications Image: iStock / aldo_nat / MaksimYremenko / ChubarovY SUN, SEA AND SURVEYS... A national survey of 2,000 people by Ipsos Mori, released by the CMA, showed that: n 89% felt they should get all, or most, of their money back if they cancel a trip and the business resells their booking n 85% felt it was unfair for them to have to pay part of the cost of a booking when they cancel n 66% felt that travel and holiday businesses do not always make it as easy to cancel a booking as they should n One in five of those who had experience of cancelling a booking felt they had been treated unfairly Source: Ipsos Mori online omnibus survey of 2,260 UK consumers aged 16-75 between 20 and 23 November 2018 SUMMER SEGRAHCFAIR For further information, please contact your local Trading Standards Service THIS SUMMER 2019 TRAVEL Ts&Cs For further information, please contact your local Trading Standards Service...AND THE OUTLOOK THIS SUMMER IS FAIR! A campaign is under way to help holiday and travel firms improve the clarity of their terms and conditions