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Old 24 Sep 19, 06:33 PM  
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#11
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Originally Posted by sully301 View Post
whoa! i didn't know that. It seems that companies have you by the short and curls whatever. I wonder why the hotels allow the payment to be made after the trip? the travel companies have the money 2-3 months before!
Just standard business practices - almost all companies work on 30 to 90 days after the service provided for payment

If you are a hotelier and TC comes to you and says we will buy 150 rooms every week of the year, you don't have to advertise or do anything to get this cash, just block reserve the rooms for us, but we will only pay you 30 days after each stay ends, you'd take that deal...

$15k a night (at least) guaranteed without having to lift a finger (until of course it's no longer guaranteed)
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Old 24 Sep 19, 07:53 PM  
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In short, in most cases the CAA will only pay the supplier for the hotel stays of people whose accommodation was within an ATOL-bonded package, AND were in-house on the day TC went down, ie were staying in the hotel on the night of Sun 22/09.

Charging the credit cards of those who had already checked out is an interesting one.
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Old 25 Sep 19, 09:37 PM  
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Old 25 Sep 19, 09:51 PM  
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Whilst I agree that charging peoples cards who have already checked out is a very bold move, it's my understanding that these people have already had their holiday and so won't receive any refunds etc under atol, though the hotel should have some kind of supplier failure insurance in place to cover such situations?

We are checking in tomorrow and through email communication this week the avanti have been fantastic with us so far. We emailed before the collapse and were told that TC pay 30 days after departure. We agreed a reduced rate against the current (very short notice) booking rate showing everywhere online and will be paying this on check in tomorrow. That said, we will be doing this on a prepaid card with no other funds in it so nothing further can be taken, just incase.
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Old 25 Sep 19, 09:58 PM  
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Originally Posted by twogoto View Post
Whilst I agree that charging peoples cards who have already checked out is a very bold move, it's my understanding that these people have already had their holiday and so won't receive any refunds etc under atol, though the hotel should have some kind of supplier failure insurance in place to cover such situations?

We are checking in tomorrow and through email communication this week the avanti have been fantastic with us so far. We emailed before the collapse and were told that TC pay 30 days after departure. We agreed a reduced rate against the current (very short notice) booking rate showing everywhere online and will be paying this on check in tomorrow. That said, we will be doing this on a prepaid card with no other funds in it so nothing further can be taken, just incase.
Just be careful with the prepaid card, someone had money taken from their Revolut instead of their credit card, which was also registered at Avanti, leaving them without funds. If you use it then lock it once used so that no extra funds can be taken. Hopefully as you have already agreed the rate this should not happen to you. The monies were taken after return to UK.

Edited at 09:59 PM.
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Old 25 Sep 19, 10:03 PM  
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Originally Posted by anneeb View Post
Just be careful with the prepaid card, someone had money taken from their Revolut instead of their credit card, which was also registered at Avanti, leaving them without funds. If you use it then lock it once used so that no extra funds can be taken. Hopefully as you have already agreed the rate this should not happen to you. The monies were taken after return to UK.
We have two revolut cards with us so planning on keeping the rest of our spends in the one the avanti won't have on file - last time we were there they did take the resort fees twice (once on check-in and again after week one, though we did get it back immediately after raising it along with a refund of the original resort fees by way of apology) so we were planning on doing this anyway with the two cards. Hopefully they aren't looking to make up the money they've lost by charging future guests extra... I'm glad we have what we agreed in writing from them and that we agreed it before TC actually collapsed!
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Old 25 Sep 19, 10:32 PM  
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My dd & her boyfriend only checked out of the Avanti palms 11 days ago, booked with Thomas cook as a package & the card that was swiped at check in has now got no funds in it as it’s a spare account used for such things, wonder what happens if they try to take payment
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Old 25 Sep 19, 11:57 PM  
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Originally Posted by keeley78 View Post
My dd & her boyfriend only checked out of the Avanti palms 11 days ago, booked with Thomas cook as a package & the card that was swiped at check in has now got no funds in it as it’s a spare account used for such things, wonder what happens if they try to take payment
I worked at a hotel and we quite frequently tried to charge cards on file after a guest left, for damages or that we’d undercharged them. A lot of the time the payment wouldn’t go through, and if it didn’t we had to leave it. If we had another card on file for anything- room service, telephone calls, etc, we’d try and charge that too.

This is a good reminder to pay on a card which is just used to move money around, but then you don’t have the protection you’d get with booking on a credit card so it’s a toss up I suppose.

I’m really shocked at what Avanti are doing. I thought the hotel I worked at was bad, but we never back charged people who’d already left because their travel agent wasn’t paying, sometimes unfortunately you have to take the loss. They’ve made a lot of money out of TC guests over the years, they should have decided to just accept this loss and move on.

I can more understand locking guests out as that’s pretty common place in hotels when a travel agent goes bust, but like I said on another thread locking out is only done so guests have to come to reception and discuss their options with you. It’s not normally a bullying tactic to get you to pay.

Hotels are in a bad way over this but I feel avanti have missed the ball, a lot of us could have been future guests at avanti and honestly I might think twice.
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Old 26 Sep 19, 12:13 AM  
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Actually they won't. For anyone staying after the collapse the booking is covered by ATOL (or the other one, I forget).

ATOL doesn't cover anything prior to the company collapsing...

For holidays already taken in the last few weeks, TC hasn't paid these yet as they are due 60 days after invoice. So the hotel is waiting for payment (which will never come or will be pennies in the pound).

When you next check in, look carefully at what you sign, it specifically says on almost all hotel check in systems that if the company due to pay your bill doesn't you give the hotel authority to charge you for it.

It's on the BBC website somewhere as well today...
I can't get my head around this .
I pay TC £1000 for the hotel, that is the amount that comes off my card .
TC go bust, no problem I will get that money back, I haven't had the holiday yet and I get the £1000 back .
I pay TC for the hotel I have stayed in I'm leaving the day they go bust, no problem I have had my holiday, next thing I find the hotel have charged my card £1000 because TC have not yet paid the hotel, so I have lost £1000 because I have had my holiday ?
So my question is are you only protected if you don't have the holiday?
How can you get the the money back that the hotel have charged to your card?
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Old 26 Sep 19, 12:28 AM  
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Originally Posted by Lindaelaine View Post
I can't get my head around this .
I pay TC £1000 for the hotel, that is the amount that comes off my card .
TC go bust, no problem I will get that money back, I haven't had the holiday yet and I get the £1000 back .
I pay TC for the hotel I have stayed in I'm leaving the day they go bust, no problem I have had my holiday, next thing I find the hotel have charged my card £1000 because TC have not yet paid the hotel, so I have lost £1000 because I have had my holiday ?
So my question is are you only protected if you don't have the holiday?
How can you get the the money back that the hotel have charged to your card?
Honestly I don’t understand ATOL and ABTA 100% but I do know this- because it was my job at the hotel I worked at.

Charging the company is always done at check out.

Let’s say you book with TC.

They contact the hotels reservation team- normally through an automatic email- and say ‘Mrs Smith, five nights from x date to x date’ and then the rate they paid for the room at. This is not the rate you paid for, which is always more.

Anyway, the hotel reservation department make the reservation. They input the data for how much each night is coatings TC based on the rates on the email.

Then you check in, you stay five nights and check out. Whilst you where staying the system hasn’t yet charged anyone for your stay.

Then someone- me at my old job- opens the reservation, makes sure the rates are correct and charges TC.

TC may then also take a few weeks for the payment to come through, from what I understood it came monthly but I didn’t work in finance.

So basically what I’m saying is if you booked through TC and your holiday was cancelled you get your money back through ATOL and that’s it done.

But if you stayed anytime this last month in a hotel then you’ve had your holiday so ATOL won’t be paying you back but some hotels- not all- may try and backcharge you for their missing money.

And if you are currently at the hotel then it’s even worse because they can pressure you to pay in person- as we’ve seen happen.

Some hotels have this in their terms and conditions, that they can charge you if your travel agent goes.

Long story short- hotels aren’t paid until after you’ve left, so if your travel agent goes bust even after your stay the hotel hasn’t been paid for it and they might start looking for money.

It’s all a massive mess though, hopefully if people are backcharged they can contest it or ask ATOL to repay because it’s completely putting all the blame on the holidaymakers who are just left in the middle of this.
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