Funway Holidays to close after three decades – what it means for bookings and refunds

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HOLIDAY group Funway Holidays is closing after 27 years due to the coronavirus crisis.

The UK company, which specialises in trips to the US and the Caribbean, announced today it is shutting its doors in September.

In a statement on its website, it said: “Funway Holidays International LLC will cease trading on September 30, 2020.

“All bookings departing on or after September 1, 2020 are now cancelled.”

According to Travel Weekly, the Covid-19 outbreak has had a “severe” impact on the business.

It has not been confirmed yet how many jobs will be lost, but the company states on its website that it employs around 50 staff in its London head office.

We round-up your rights to refund if your trip is cancelled.

We’ve asked Funway how many people are currently on holiday and whether its imminent closure affects trips currently in place.

We will update this article when we hear back but given the firm is still operating until September 30 it’s likely trips will be honoured until then.

If Funway can’t honour bookings and your holiday is Atol (Air Travel Organiser’s Licence) protected you are safe from being stranded abroad or losing your money.

Under these rules the UK’s aviation regulator, the Civil Aviation Authority (CAA), will bring you home even if your provider has gone bust.

According to Funway’s website, many of its flights and flight-inclusive holidays are protected by the Atol scheme.

But not all holiday and travel services are protected.

You will have been sent an Atol certificate if your holiday and/or flights are protected by the scheme.

If your holiday isn’t Atol protected, you may need to make your own arrangements to get home and then try to claim these back from your card provider or travel insurer – see below for more on this.

We’ve asked Funway whether trips booked before September 1 will still go ahead and we’ll update this article as soon as we get a response.

If your trip isn’t going ahead, Funway should provide you with a full refund.

If it doesn’t, you can try claiming back the costs via Section 75 of the Consumer Credit Act.

This rule means that if you pay for something between £100 and £30,000 on your credit card and something happens – the tour operator goes bust, for example – your card provider is just as responsible as the holiday company.

To make a claim, contact your credit card provider; your first port of call should be its customer service – and tell it you want to make a claim under Section 75.

It should then send you a claim form which you can fill in and your provider will use this to process your application.

If you paid for your flights by debit card – or by credit card and the cost is under £100 – you might be able to claim a refund under Chargeback rules.

You must do this within 120 days to get the money back, but unlike Section 75, this is not a legal requirement.

The company has pledged to refund holidays booked on or after September 1, with all deposits being refunded in full and all credit notes paid in cash.

You should check the small print of your travel insurance for both “Scheduled Airline Failure Insurance (SAFI)” and “End Supplier Failure” to see whether you’re covered if Funway doesn’t pay out.

SAFI is flight coverage only while End Supplier Failure will include certain other costs as well, depending on your policy.

This could include cover for transportation such as ferries, trains and coaches, as well as hotels, villas and cottages.

But be warned that some travel insurers have excluded cover for issues related to coronavirus, so you’d need to ask your insurer if you’re protected.

If you make a claim you’ll also likely need to pay a fee known as an excess before you get your money back.

Thousands of holidaymakers face being left out of pocket for trips where they STILL need to quarantine.

While Virgin passengers have been left waiting up to four months for refunds after the Covid-19 outbreak.

We’ve created some guidance about what to do if you want to cancel your holiday due to quarantine rules.

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