(Alliance News) - A UK regulator on Thursday warned travel firms to "respect" refund rights of holidaymakers ahead of the upcoming summer season, with Tui AG already pledging to provide "clearer information" upfront on cash back options should trips fall through due to Covid-19.
The UK Competition & Markets Authority said it has written to 100 package holiday providers.
"The letter reminds the firms of their legal obligations and of the need to ensure refund options are clear and accessible," the CMA said.
On the London Stock Exchange, shares in On the Beach Group PLC were 9.8% lower. Jet2 PLC was down 4.4%, while Anglo-German tour operator Tui shed just 1.9%.
"As a result of CMA action, Tui UK has now given a formal commitment - known as 'undertakings' - to provide clearer information on refunds upfront to customers whose holidays have been cancelled due to Covid-19," the CMA added.
"The company had already taken steps to meet concerns raised by the CMA, by improving the information it provides to customers and making it easier for people to get their money back."
The industry has received over 23,000 complaints since the pandemic began over refunds, the watchdog added.
The intervention from the regulator comes as the UK progresses on its vaccination campaign and adds more nations to its 'green list'.
Last Friday, the UK government revealed that Portugal, Gibraltar and Israel are among 12 destinations on England's new green list for travel.
The list however, lacked short-haul tourism hotspots but included countries which are heavily restricting overseas visitors, such as Australia and New Zealand.
By Eric Cunha; ericcunha@alliancenews.com
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On The Beach (OTB)
TUI AG (TUI)
Jet2 (JET2)