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Travel companies have been warned against mistreating unfortunate customers by relying on unenforceable deposit and payment demands. A lack of awareness over how much can be retained when a traveller cancels a booking is widespread, according to the Competition and Markets Authority. A company cannot automatically keep a large deposit if the customer cancels owing to unforeseen circumstances. Such a contract may be unfair, even if written into terms and conditions.
For example, somebody may cancel a booking owing to illness or a family bereavement. If the travel company has plenty of time to re-sell the room or holiday, or if becomes available at a peak time, then the company should refund the payment or a hefty deposit. Any amount it charges should reflect its costs. If the company includes a blanket "non-refundable deposit" demand or cancellation fee in its terms and conditions then this could be an unfair contract, not legally binding, and unenforceable - even if the customer has signed it.
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