Concord School District parents could lose more than $60,000 combined after eighth-graders’ annual volunteer-led trip to Washington, D.C., in April was canceled due to the coronavirus pandemic.
The international travel company that organizes the trip, EF Explore America, says it is not contractually obligated to give the 88 local families refunds for the three-day trip, according to Concord’s Interim Superintendent Frank Bass. Each family may see a return of $250 after paying upwards of $1,000 for the trip and services that were never rendered.
Most families paid for a basic $99 insurance plan, which calls for refunds in emergency situations as stipulated in the company’s contract. A global pandemic is not explicitly listed as one of those scenarios.
At Monday night’s school board meeting, Bass said he had consulted with the New Hampshire Attorney General’s Office, the school district’s attorney and EF Explore America’s CEO and regional manager. He said parents are bound by the contract they signed with the tour company.
“They’ve made a very steadfast position that what they’re doing for us is what they are doing for the entire country and they’re not deviating from that one iota,” Bass said of EF Explore America. “Obviously, the parents were very disconsolate to say the least, and felt it was patently unfair, which I agree with.”
In a statement Tuesday, EF Explore America said it has offered customers “extensive exceptions to our standard policies” given the unique circumstances caused by the pandemic. In addition to partial refunds, the company said groups can move their tours to a later date or take advantage of travel vouchers that can be used for two years.
With schools closed and travel halted throughout the globe due to COVID-19, parents in other states are finding themselves in similar situations. More than 8,000 people have signed an online petition requesting a full refund from EF Explore America and its international division, EF Educational Tours, accusing the business of taking advantage of families during an international health crisis.
The Consumer Protection Bureau of the attorney general’s office has received several complaints in recent weeks against the tour company from New Hampshire school districts, including Timberlane and Windham, said Associate Attorney General James Boffetti. The bureau has since reviewed the cancellation terms in the contracts signed by parents and the proposals offered to families by EF Explore America.
“Based on our review, we do not find that the consumer complaints rise to a level of unfair or deceptive business practices that would implicate the Consumer Protection Act,” Boffetti said.
However, the bureau will continue to review any new complaints against EF Explore America and EF Educational Tours to ensure the business is in “full compliance with New Hampshire law,” Boffetti said.
This scenario leaves the Concord School District with two options, Bass said: Either the district uses taxpayer money to purchase vouchers from eighth grade parents with the intention of selling them to parents of future eighth graders within the next two years, or parents are out the money. Bass said if the latter opinion is chosen, the district will not do business with EF Explore America in the future. If the district purchases the vouchers, it will be obligated to contract with EF Explore America for at least another year.
Bass said the district would buy vouchers for $999 each from the 85 parents who have not already opted for a reimbursement or received some form of a refund.
EF Explore America did offer a $219 insurance policy, which allows families to cancel at any time and for any reason. Only a couple of Concord families opted for this plan, Bass said.
A few families also already opted for $250 reimbursements from the tour company. Bass said those families would not be eligible for a refund if the district does purchase the vouchers at $999 a piece from each household.
If fewer students choose to go on the trip in 2021 than signed up this year, the remaining vouchers can be used for students in 2022, Bass said. If there are more students next year than available vouchers, some parents would have to buy their tickets from the travel company.
However, if the trip is canceled in 2021, and again in 2022, the school district would be out roughly $85,000 because the vouchers will have expired.
“I do want to be clear, there is risk here. This is not a situation where the board gets off scot-free. There is a certain amount of risk that comes into play,” Bass told the school board at its meeting Monday.
Concord School Board member David Parker said other tour companies have been more responsive to requests for refunds. As the founder of Parker Academy, a private school for 6th through 12th graders, Parker said he had planned a trip to Spain this year for students, and they were able to get 95% of their money back because of the pandemic.
“Do we want to continue to do business with EF Tours if that’s the way they’re treating us?” Parker said. “I think we are getting into some really messy territory. I would love to help these families out, but we’re also obligated to continue to do business with EF Tours if we buy these vouchers, and I have a problem with that.”
EF Explore America said they have tried to be as flexible as possible with customers. In mid-March, when the federal government imposed travel restrictions and states issued stay-at-home orders, they were forced to postpone or cancel trips just weeks away, according to the company’s website.
The tour company said it starts planning tours as soon as participants enroll and enter into contracts with suppliers, including airlines and hotels. The closer they cancel to a trip’s start date, the more money they owe under those contracts.
“We understand that the public health and economic impacts of this crisis are severe, and we are doing everything we can to support the families and individuals who were planning to travel with us,” EF Explore America said in a statement.
Bass said he doesn’t agree with the deal EF Explore America has offered to parents. On the other hand, the company has its own financial future to take into account, he said.
“If the company were to give rebates to all of the people who are going on trips – we’re talking national now, 30, 40, 50 thousand trips that are all booked – they’d be bankrupt. I can guarantee it. Absolutely bankrupt,” Bass said. “That’s why they probably held fast to their position.”
Throughout Monday’s meeting, board members expressed their concern about investing tens of thousands of dollars on vouchers when there isn’t 100% certainty the money would be paid back by future trip-goers.
Board member Gina Cannon suggested parents could sell their vouchers online or to other Concord parents themselves, instead of getting the district involved.
“If this goes belly up, how do we explain that to the taxpayers?” Cannon said.
“You’re absolutely right,” Bass responded. “There are no two ways around that – you’re stuck with the tab.”