Should I pay the remaining balance on my holiday?

[Darlo74]

I've got a multi-location family holiday planned to the USA at the end of July. This covers all flights (BA) and hotel in Washington. So far I have paid a £400 deposit and have the balance of £3k to pay on 22nd April.

So, I'm thinking I can either forfeit the deposit and forget about it until everything's clearer (whenever that may be) or pay the remaining balance, hoping travel restrictions will be relaxed by end of July. If they're not the Travel Company has said we can change dates or get a credit note for the full value. I'm okay with that, even though I'd need to fund any difference in price changing dates, but I guess my risk is if the Travel Company goes pop - what are my options then, would this be covered by my Travel Insurance as the booking was made last September even though the full payment wasn't made until post-Covid-19?

The Travel Company have said they won't offer a refund and I'd have to do that through my insurance, or presumably through my credit card as a Section 75?

Any advice welcome, should I bail out and cover a £400 loss or pay the balance and see where it goes?

[jpringle819]

I think they have to give a refund if they cancel the holiday but very few make this knowledge public. The problem you have is that you need to stick to their terms and conditions and may off the balance in order to be eligible for the refund. I am in a similar situation in that my holiday to Cyprus is currently still going ahead on 1st May.

I currently have 2 options, rearrange for another date before 31st March 2021 which I can't do as have no more holiday left. Or I can accept a voucher for the total cost of the holiday, which will be worthless if they go bust. I am waiting for the third option which is they cancel as they cannot provide the paid for holiday and I get a refund.

[The Leaper]

jpringle819,

Be careful, you are in a minefield. They actually have to cancel before they are legally obliged to pay you a refund. The fact that they are not able to provide the holiday (you don't say why but maybe because of FCO advice) is not the same as them cancelling.

R.

[IJWS15]

Talk to your travel insurer, if they won't cover the additional payment bail out.

I had a place booked in Switzerland in May and we were due to pay in full last week - cancelled.

I have a place booked in Normandy in September, deposit returned if I cancel before a date in July. I will be speaking to my travel insurer early in July to see if I am covered if I don't cancel. If I am not then I will bail.

What is the point of a holiday if you can't go out, may as well stay at home. Granted the view would be far better in Switzerland (Eiger, Monke & Jungfrau in view from the front window).

[Silverage]

I’m in a similar situation with a Tui booking for August. I think I am going to unilaterally bail on it and forfeit the deposit rather than pay the balance and struggle to get it back when the holiday is inevitably cancelled. I’ve only paid £200 so far. I can live with losing that rather than potentially the £5k full price.

[Mave]

Pretty much the same with a TUI holiday end July. The wife says we should pay the money, hope we get to go and try to claim on the insurance if we can't - I say I'd rather accept the inevitable, keep the money in my pocket and lose the deposit rather than be one of the many queuing to try to get money back from the insurer or TUI.

[PositronicRay]

Paying the balance on a busted flush, in the hope of recouping your losses sounds like a foolhardy thing to do.

[TRIUMPHBULLET]

My nephew and his friends are getting the 'pay the balance now or forfeit your deposit' from his travel company, I have advised him that he should regard the deposit (£80) as gone as he does not have his holiday till Aug and I am sure travel restrictions will still be in place as I am sure they know.
I would like to think I am wrong but my faith in travel companies is at an all time low.
If as many travel companies as I expect go to the wall this year he will be lucky to get his money back at any reasonable time in the future, the amount of claims will be astronomical.
I suspect many travel company owners will use this as a way of bolstering finances for the near future.

[anonymous-user]

Silverage said:

I’m in a similar situation with a Tui booking for August. I think I am going to unilaterally bail on it and forfeit the deposit rather than pay the balance and struggle to get it back when the holiday is inevitably cancelled. I’ve only paid £200 so far. I can live with losing that rather than potentially the £5k full price.

August is a long way away, I don’t think it’s inevitable that it will be cancelled.

[Julietbravo]

If the travel company goes tilt, getting money back might be a pain. I don't know enough to understand how it works, but they must be tied to hotels and things - I am guessing that even if they close their UK operations, they still have outgoings.

The situation is not the same all over Europe. I am in The Netherlands, and we are not limited to going out, but all non-essential shops are closed and restaurants are takeaway only. If you do go out, everyone adheres to the 1.5 m rule. Trouble is, even if I wanted to, I can't get through France or Belgium to get back to the UK, and the German airports are closed. All of the hotels are closed. Because every country's curve is different, and some countries are anticipating a second wave when quarantine is relaxed, I think travel will be problematic until the NY.

Edited by Julietbravo on Thursday 2nd April 19:27

[Robertj21a]

TRIUMPHBULLET said:

My nephew and his friends are getting the 'pay the balance now or forfeit your deposit' from his travel company, I have advised him that he should regard the deposit (£80) as gone as he does not have his holiday till Aug and I am sure travel restrictions will still be in place as I am sure they know.
I would like to think I am wrong but my faith in travel companies is at an all time low.
If as many travel companies as I expect go to the wall this year he will be lucky to get his money back at any reasonable time in the future, the amount of claims will be astronomical.
I suspect many travel company owners will use this as a way of bolstering finances for the near future.

Can't the balance due be put on a credit card so as to give protection ?

[anonymous-user]

Julietbravo said:

If the travel company goes tilt, getting money back might be a pain. I don't know enough to understand how it works, but they must be tied to hotels and things - I am guessing that even if they close their UK operations, they still have outgoings.

If we’re in lockdown with travel restrictions still in august much of the economy will have gone tilt.

[CypSIdders]

jpringle819 said:

I think they have to give a refund if they cancel the holiday but very few make this knowledge public. The problem you have is that you need to stick to their terms and conditions and may off the balance in order to be eligible for the refund. I am in a similar situation in that my holiday to Cyprus is currently still going ahead on 1st May.

I currently have 2 options, rearrange for another date before 31st March 2021 which I can't do as have no more holiday left. Or I can accept a voucher for the total cost of the holiday, which will be worthless if they go bust. I am waiting for the third option which is they cancel as they cannot provide the paid for holiday and I get a refund.

We're currently in Cyprus, we chose to stay here rather than return to the UK, which is a moot point anyway as all our flights have been cancelled.
At the moment the whole country is in lock down, there is a curfew in operation between 21:00 - 06:00, you are allowed to leave your house once a day, only after getting permission from the government via text message, there are no flights in or out for the general public, only Cyprus residents can fly in, anyone who needs to fly in must be able to produce a medical certificate showing they are virus free and will be forcibly isolated for 14 days in designated Hotels.
This is supposed to end on April 13th.

IMO, that date will be extended and there is no way that holidays will be happening on 1st May!

[anonymous-user]

This may or may not be of assistance in some holiday cases -

https://www.pistonheads.com/gassing/topic.asp?h=0&...

[Spare tyre]

I’d bail now, can always rebook

[sociopath]

Advice in BBC today was pay it with s credit card.

If you don't pay you're in breach of contract, if you pay it and it gets cancelled by the govt or travel company then you can claim back from cc company as well as travel company

[S100HP]

I'd be very careful with some of the advice above. ABTA and tour ops are trying to get package travel regulations changed, meaning you might not get a refund if you cannot take the holiday. You might get the money back in the form of a voucher, or have to claim on your insurance, which now exclude pandemic.

They're also trying to stop charge backs.

Personally, talking as someone who works for a tour op, I'd walk away from the deposit.

[anonymous-user]

Silverage said:

I’m in a similar situation with a Tui booking for August. I think I am going to unilaterally bail on it and forfeit the deposit rather than pay the balance and struggle to get it back when the holiday is inevitably cancelled. I’ve only paid £200 so far. I can live with losing that rather than potentially the £5k full price.

I’m in the same position as you and have to pay the balance by Sat. With regards to deposit we initially paid £200 followed by a further £600. I called last week and was informed that if you cancel you lose a deposit of £200 per person. If I had cancelled before paying the extra £600 I would have therefore been charged an additional £600 at the time of cancelling (family of four)

[Darlo74]

As a few have said already, it certainly is a minefield. Thanks for your views - I'm going to leave it until the wire on 22 April and see where we are then. At the minute I'm minded to bail out and take the loss on the deposit. Even if we can travel, if there are restrictions on what we can do when we're there it won't be the holiday we've planned.

[Silverage]

zj2016 said:

Silverage said:

I’m in a similar situation with a Tui booking for August. I think I am going to unilaterally bail on it and forfeit the deposit rather than pay the balance and struggle to get it back when the holiday is inevitably cancelled. I’ve only paid £200 so far. I can live with losing that rather than potentially the £5k full price.

I’m in the same position as you and have to pay the balance by Sat. With regards to deposit we initially paid £200 followed by a further £600. I called last week and was informed that if you cancel you lose a deposit of £200 per person. If I had cancelled before paying the extra £600 I would have therefore been charged an additional £600 at the time of cancelling (family of four)

Yes, I’d heard this before. My £600 second part of the deposit is due end of this month. I think I’d like to avoid having to pay this just for the privilege of being able to cancel and lose it all. I suppose this would put me in breach of contract, but I wonder what the chances are of them chasing it up? I can’t imagine they are getting many new bookings at the moment as no one can accurately predict when this mess will be over and international travel for recreation will return. All the staff they have left must just be working on cancellations and refunds. They must be absolutely haemorrhaging cash. Who knows how long Tui themselves are going to be around for?