These are your rights if the coronavirus pandemic has disrupted your plans to travel

Consumer rights have become a major topic of concern for hundreds of travellers forced to cancel holidays due to the coronavirus pandemic

Coronavirus airlines

Would-be holiday makers are concerned about what their rights are after being forced to cancel their trips due to coronavirus Source: Getty Images

The outbreak of coronavirus has been a bitter pill to swallow for would-be travellers across Australia. 

The global pandemic has forced thousands of cancellations while border closures, travel bans and other restrictions have stopped the travel industry in its tracks.
The public struggles of Virgin Australia and Flight Centre have added an extra layer of uncertainty for consumers who are concerned about their rights.

So, what rights do you have if you had a flight booked?

Are you entitled to a refund?

The Australian Competition and Consumer Commission expects consumer guarantees offered by travel companies likely won’t apply during the pandemic.

It could mean several would-be travellers looking for a refund or credit for their cancelled holiday miss out altogether.

ACCC Chairman Rod Sims told SBS News it all depends on the terms and conditions on the plane ticket.

Anyone who was supposed to be flying during the pandemic is entitled to the airline's terms and conditions from the date they booked it.

"If you had a fully refundable ticket or if there's no term and condition that prevents you from getting a refund then you can rely on the term and condition to get a refund and the companies can't deny that," he said.

Unfortunately, factors such as where the tickets were purchased from and the reason for cancelling can complicate the situation

Professor Jeannie Paterson of the University of Melbourne said the unprecedented nature of the coronavirus outbreak has made it “very confusing’ for consumers.
Annamaria Ciacciarelli
Annamaria Ciacciarelli was given only a 40 per cent refund when she was forced to cancel a family holiday due to the outbreak of coronavirus Source: Supplied
“When consumers can’t fly because they or the airline aren’t allowed to, the bottom line in my view is people are entitled to a refund less a possible cancellation fee,” Professor Paterson said.

“It can be tricky for those who have booked flights through a travel agent as it means they have to go through a travel agent for their refund and not the airline they were supposed to fly with.

“This can add extra terms and conditions to their booking which can change their eligibility for a refund."

Sydney mother Annamaria Ciacciarelli and her family had to axe their six-and-a-half-week Europe holiday when travel bans were introduced last month.

Ms Ciacciarelli requested a refund, but she was only offered back 40 per cent of what she paid.

"They're offering vouchers, but I mean, how do we know what the world's going to look like next year and the year after?" she said.

“So we decided to get as much money as we could and try again in a few years.

Should you accept a voucher or credit?

Travellers may be able to recoup more of their money back if they are willing to accept the cost of their cancelled ticket in airline credits.

However, Professor Paterson warns travellers to do their research before deciding to take a voucher over a refund.

“For the small group of people that know they will travel again soon and can use up the total value, then yes a voucher is a good option.
Coronavirus travel
The outbreak of coronavirus has shaken the global travel industry with many countries closing their borders Source: Getty Images
“Sadly, for most people they don’t know when they will travel again or where they will be able to go, so there is a high chance they won’t be able to use the voucher or all their credits.

“In this instance a voucher is not a good option and a refund, less a cancellation fee, may be better.”

There are other risks with accepting a voucher or credit during these times with so many companies fighting for survival.

Passengers who booked tickets with Virgin Australia also have to deal with the added uncertainty surrounding the airline's future. 

“For people who have booked on Virgin, it is not clear what will happen to them through the company’s administration process,” Prof Paterson said.

“While they would be deemed as creditors by the administrators, they would be very low priority and it could very well end without a positive outcome.”

What are Australian airlines offering customers?

Australia’s national carrier Qantas has eased some of their cancellation policies during the coronavirus outbreak.

According to the airline’s conditions of carriage, those who had their flight cancelled due to the pandemic should be eligible for a refund if you request one.

Vouchers have also been offered to those who chose not to fly on non-cancelled flights due to depart before 31 July.

These vouchers are valid until the end of 2021 and are equal to the value you paid for your original ticket.

The credit voucher must be claimed before 30 April 2020.

It is a whole lot harder to get a refund if you were set to fly with Jetstar, Qantas’ low-cost carrier.
Grounded Virgin Australia planes at Tullamarine Airport in Melbourne.
Grounded Virgin Australia planes at Tullamarine Airport in Melbourne. Source: AAP
Their conditions of carriage state they will provide customers with a travel credit if a flight is cancelled outside their control. There is no mention if a refund can be claimed.

Jetstar are also offering flight credits for all non-cancelled flights due to depart before 31 July.

The vouchers are valid for 12 months and only on flights which depart within 12 months of the booking date.

Despite declaring voluntary administration last week, Virgin Australia are still offering a refund or credit for those who bought a ticket on any flight which was cancelled.

Virgin is offering passengers who chose not to fly on non-cancelled flights set to depart by 30 June a credit voucher.

They are also offering the option to rebook tickets with cancellation fees waived by Virgin, but you will still need to pay any difference in cost or taxes.

Finally Tiger Air, owned by Virgin Australia, is offering passengers a flight credit to the equal value of their ticket if their flight was cancelled.

They also have the same policy for non-cancelled flights with the chance to rebook or claim a credit.        

What is happening internationally?

Airlines around the world have also had to provide millions of dollars in refunds.

In the United States, the US Transportation Department has ordered all airlines to fully refund all passengers whose flights were cancelled to the outbreak of COVID-19.

United Arab Emirates-based airline Emirates has been forced to dip into their cash reserves after they announced the refund of half a million tickets. 

Europe based airlines are required to provide refunds to travellers with seven days if their flights are cancelled.

Aviation industry expert Professor Greg Bamber of Monash University says some overseas travellers “might get a better deal”.
Emirates Airlines
Emirates, one of the world's largest airlines, has almost one million refunds to process due to coronavirus related flight cancellations Source: Flickr
“Consumer law is much clearer in the United States and Europe than what it is in Australia so it may be easier for travellers in those countries to get a refund.

“If you booked your flight with an overseas carrier in Australia and with Australian currency then you would be covered by Australia law.”

For Ms Ciacciarelli the uncertainty was not worth the risk when it came to flight credits and she was just happy to be home safe with her family.

"I just think you got to take life with all the punches. You know when there are good times you got to go with that when there are setbacks you got to deal with it... there's always hope."


Share
7 min read
Published 28 April 2020 8:33pm
By Charlotte Lam, Nick Houghton

Share this with family and friends