Protection for RCNs originally applied to those issued between 10 March 2020 and 30 September 2020. This was later extended to 31 December in light of the continued impact of the coronavirus pandemic on travel.

The same conditions as previously advised to travel companies will apply to refund credit notes:

• They must be issued for a cancelled Atol-protected booking
• The booking must have been cancelled by the tour operator due to the coronavirus pandemic
• The RCN must be able to be exchanged for cash at a later date

Paul Smith, consumer director at the CAA, said: “We are aware of the challenges the travel industry is facing, and we have therefore taken the exceptional decision to extend Atol protection for refund credit notes issued up to 31 January 2021.

“Consumers should feel confident accepting refund credit notes for cancelled Atol-protected bookings where the option is suitable for them. While Atol holders are able to continue offering refund credit notes in good faith, they must also offer consumers the option of a full cash refund.”

If the consumer chooses a refund credit note, they should have the option to convert it to a cash refund at any point and must do so before 30 September 2021.