(Alliance News) - Travel holiday firm Tui AG will refund all customers whose trips were cancelled due to Covid-19 by the end of September, the UK's competitions regulator said on Wednesday.
The Competition & Markets Authority investigated the Anglo-German firm's UK arm after it received "thousands of complaints" from customers who said they did not receive refunds for cancelled holidays within 14 days, in line with consumer protection law.
"TUI UK has engaged constructively with the CMA throughout the investigation and while the vast majority of people have already received their refunds or rebooked during the CMA's investigation, any outstanding refund requests for people who had their package holiday cancelled as a result of coronavirus will be paid by September 30, 2020," the watchdog said.
It added that although some customers received their refund in the form of a credit note, they are entitled to ask for a cash refund instead.
"The CMA wants to ensure that TUI UK meets its obligation to pay refunds on time in the future. Therefore, TUI UK will report regularly to the CMA over the coming year on the time it has taken to refund customers," the CMA added.
The commitment extends to all of Tui's brands, which include First Choice, Marella Cruises, Crystal Ski and Skytours.
The CMA said: "The CMA understands that the pandemic has created extraordinary pressure for travel companies, including TUI UK. However, customers who had their holidays cancelled due to coronavirus must be treated fairly and receive their refunds promptly."
Earlier in September, Tui said holders of its senior notes due October 2021 agreed to suspend potential future limitation of the company's debt, a key term of the firm's EUR1.2 billion support package from German state-owned bank KfW and a consortium of other institutions.
The rescue package was announced back in August, easing pressure on Tui which has been hit by Covid-19 lockdown measures which crippled demand, docked cruise liners and emptied skies.
Tui in May had said it is looking to permanently reduce its cost base by 30% - which the firm explained will result in 8,000 jobs "either not being recruited or reduced".
Tui shares were 0.8% lower at 334.80 pence each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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