On The Beach OTA Secures £2 Million in Landmark Refund Case Against Ryanair

In a landmark legal victory, Manchester-based online travel agency (OTA) On The Beach (OTB), alongside affiliated entities Sunshine Co. UK. Limited and Classic Package Holidays Limited, has won over £2 million (USD 2.47 million) in a refunds case against Ryanair Holdings. This case, involving the refusal of Ryanair to provide refunds for flights canceled during the pandemic, has set a legal precedent concerning the rights of package holiday organizers to seek reimbursements from airlines.

Judge Nigel Cooper of the UK High Court delivered the decision on October 31, 2023. The dispute centered around Ryanair’s contention that OTAs had no legal entitlement to claim refunds for flights canceled during the pandemic. The court ruling establishes that online travel agents, including On The Beach, are legitimate agents acting on behalf of their clients.

On The Beach and its affiliated entities claimed and won a total of £2,074,674 for the flight component of package holidays in which they had booked a Ryanair flight on behalf of clients. Despite paying Ryanair for the flights, the airline later canceled or made significant changes to the flight times. Ryanair refused to refund the OTAs, leading to the legal dispute.

The court clarified the legal framework by relying on regulation 29 of the Package Travel Regulations 2018, providing a “right to redress” for package organizers against third parties causing them loss. Additionally, the law of unjust enrichment grants package organizers the right to claim a contribution from third parties whose liability to refund the customer is extinguished by a payment made by the package organizer.

Fox Williams, representing On The Beach, stated that the ruling clarifies the law and is expected to open the door for similar claims in the future. Shaun Morton, Chief Executive of On the Beach, welcomed the judgment and called for a review of anti-competitive behavior by certain low-cost airlines, emphasizing the importance of consumer choice and fair access to flights.

The legal victory, while concluding a protracted and costly process, underscores the significance of establishing legal precedents that protect the rights of package organizers and consumers in the evolving landscape of travel regulations. On The Beach intends to apply for costs in the aftermath of this ruling.