Vacation cancellations amid COVID-19 result in extended wait time for refunds – The Daily Star

WARRENSBURG — Amid the COVID-19 pandemic, the travel industry experienced a flood of cancellations for flights, cruises and travel packages and travel industry employees are now working to process the unprecedented number of refunds amid staff layoffs and a limited cash flow.

Joey Kemple, owner of Travel 45, a travel agency based in Warrensburg, said the massive amounts of passengers affected by travel cancellations has caused delays to refunds (via check, future cruise credit or future travel voucher).

The International Association of Travel Agents Network (IATAN) stated about 1,000,000 domestic flights have been canceled because of COVID-19, affecting 150,000,000 passengers.

IATAN also reports about 4,000,000 international flights have been canceled, affecting 590,000,000 passengers.

Kemple said travel providers are issuing layoffs to their staffs due to the lack of passengers.

Kemple said the limited staff members remaining are now being overflowed with refund requests, which is also contributing to the delays.

Kemple also said that travel providers’ cash flows have been interrupted due to mass cancellations and that once airlines receive their stimulus funds, those awaiting refunds will begin receiving them at a faster pace.

She said is it also difficult for people calling to get through to travel providers to ask questions as their phone lines are consistently busy, especially with limited crew members available to take calls.

Kemple said having information regarding refunds is important as all of the travel rules and refunds apply to everyone, not just those booked through a travel agent.

“There are people who have booked vacations on their own and they might not understand all these rules right now and what’s going on,” Kemple said.

For those waiting for a refund, future cruise credit or future travel voucher from a canceled trip, IATAN offered some advice:

• When the vacation was canceled or when you canceled it is irrelevant and when you were to take your vacation determines when your request will be processed.
• Those whose vacations were affected in March and April are just now being processed.
• If you canceled your July vacation in March and still have nothing from the travel provider, don’t panic. Those whose vacations were in March, April and now May and June will be processed first.
• The queue of refunds is so deep that some providers temporarily inhibited everybody’s ability to process refunds so that they could process what they have already and slow down the outgoing cash flow.
• Once your refund has been requested, it could take eight to 24 weeks to get your refund, future cruise credit or future travel voucher.

Kemple said many people with flights planned prior to June are having their travel insurance and deposits refunded, which she said she has never seen happen.

Kemple also said that while airlines and hotels typically do not post bookings until at least 11 months before their dates, she is seeing these businesses post itineraries and flights identical to the ones canceled this year for the exact same dates in 2021.

“That’s one new thing I’ve never seen them do before,” Kemple said. “Right now until May, you can re-book the exact same itinerary that you had for 2021.”

Additionally, Kemple said she has seen numerous agencies waiving cancellation fees.

“Personally, I’m not issuing any cancellation fees,” Kemple said. “We’re all in a tough situation and the last thing I’m going to do is keep my client’s commission. Right now, everyone needs their money.”

Kemple said she has had spring break groups, graduation groups, wedding groups, honeymoon trips and family vacations canceled.

Kemple said COVID-19 has impacted her business ‘tremendously,’ but bigger travel agencies have been hit even harder as she does not have as much overhead.

“I’m at a loss this year, but I’ll bounce back next year,” Kemple said.

Kemple said she aims to be able to make bookings for November, December and flights into next year.

“Everyone is going through a tough time, but a vacation is something everybody looks forward to,” Kemple said. “People are very disappointed because that’s what they want to do right now. They don’t want to be stuck at home right now, they want to go on a trip somewhere.”