That overseas holiday you booked doesn't look so attractive now that the Government has labelled every country including New Zealand - Reconsider your need to travel, is closing borders to cruise ships and is requiring self-isolation for 14 days on return to Australia.
Can you cancel your travel plans? Of course you can. But if you do, Will you receive a refund? That is what we're about to explore.
Airlines, cruise lines, tour operators, resorts and hotels all have cancellation policies in their terms and conditions.
- Airfares are refundable, less a cancellation fee, if they are a flexi fare. But if they are a budget fare, no refund is given if the ticket is cancelled. For flights to 31 May 2020, Qantas and Virgin are waiving these strict conditions and are issuing fare credits.
- Cruise lines have policies to refund less and less of the fare the closer the cancellation is to the departure. For example, for cancellations 90 days before, the deposit is lost, 60 days before 50% of the price is lost, and 30 days or less before, the whole fare is lost. Cruise lines are waiving these conditions and are giving full refunds up to 48 hours before and are issuing cruise fare credits.
- Tour Operators have cancellation policies like cruise lines. Tour Operators are not giving refunds, but are re-scheduling tours.
What about cancellation cover in your travel insurance policy? Will it cover lost deposits and cancellation fees? It depends on the policy exclusions.
There are not one, not two, but three policy exclusions each of which apply to the coronavirus (COVID-19) pandemic. They are:
- the risk of infection is a known risk;
- COVID-19 has been declared a pandemic by the World Health Organisation; and
- there is a Government directive warning against overseas travel.
In short, travel insurance provides no cover at all for lost deposits and cancellation fees.
For more information click on my article