Thousands to be refunded for cancelled bookings as Sykes Holiday Cottages changes policy

Thousands will get refunds for cancelled holidays after a cottage lets firm reversed its policy following action from the watchdog.

The Competition and Markets Authority (CMA) investigated Sykes Holiday Cottages for refusing to provide full cash refunds to all of its customers whose bookings were cancelled because of Covid-19.

The firm has now reversed its policy and will offer affected customers refunds. It insisted that, while it had worked with the CMA, the “wheels were in motion” before the investigation.

Andrea Coscelli, of the CMA, said: “Our Covid-19 taskforce has received thousands of complaints about holiday rental firms, so it’s good to see our action bringing results for consumers.

“Sykes is the second major holiday lets company to change its COVID cancellations policy by offering full refunds following CMA intervention. We expect all companies to do so.”

The CMA had already convinced Vacation Rentals, the parent company of Hoseasons and Cottages.com, to reverse its policy.

Sykes has pledged to offer a full cash refund to those whose holidays were cancelled, and who have not already rebooked, and convert credit vouchers into cash when requested. It will also send regular updates to the regulator.

The policy will apply to 24 brands owned by Sykes including Pure Cottages Group and Carbis Bay Holidays.

Graham Donoghue, chief executive of Sykes Holiday Cottages, said: “The last few months have been some of the most stressful for UK holidaymakers and most challenging for the sector’s agents and operators.

“Whilst the majority of customers with bookings starting during the current lockdown period have successfully rearranged their holiday to a later date, we recognise that not all those have been able to or wanted to. Throughout June, more than 5,000 customers have received a full refund.”

The CMA has received 5,500 complaints about holiday accommodation and it said Sykes made uop a “significant proportion” of these.

While several firms have changed their policies it said there were still some refusing their customers refunds and that they “risked further action”. The CMA has the power to take firms to court and they can be fined.