Economy
Airlines, hotels hit with refunds crisis on lockdown cancellations
Monday March 29 2021
Passengers disembark from a Jambojet plane at Jomo Kenyatta International Airport, Nairobi. FILE PHOTO | NMG
Airlines and top hotels are faced with multi-million shilling refund claims after Kenya restricted travel in and out Nairobi and four surrounding counties, throwing Easter holiday plans into disarray.
Airlines and hotels face losses in the wake of cancelled bookings for the high season of Easter when most carriers and firms in the hospitality business had recorded full bookings.
Now, thousands of travellers are faced with the options of vouchers for future travel or uncertain cash refunds for air tickets and room payments for unused services in the wake of the disruptions.
Most hotels and carriers are inclined to customers accepting vouchers which allow them to travel in future, while conserving the much-needed cash to remain afloat.
“We will allow the tickets to be used for the next three to six months without penalties,” Safarilink chief executive Alex Avedi told the Business Daily yesterday. “This is a big blow to tourism, too. We may have to close operations again.”
Kenya Airways said it has suspended domestic flights to comply with new anti-coronavirus lockdown measures announced by President Uhuru Kenyatta on Friday.
Mr Kenyatta announced travel restrictions in the capital Nairobi and four surrounding counties to slow surging Covid-19 infections.
Under the new curbs, Nairobi and the counties of Kajiado, Machakos, Kiambu and Nakuru would be treated as one zone, and residents would be barred from crossing over to other areas.
The sale of alcohol in the…