The Competition & Markets Authority is to launch an investigation into concerns over cancellation policies across the hospitality industry.

With airlines and travel agents in some cases offering vouchers instead of the cash refunds consumers are legally entitled to, the body said it had seen increasing numbers of complaints related to the issue.

Such vouchers can often only be used during a more expensive period.

The topic now accounts for four out of five complaints being received by the Covid-19 taskforce, which monitors market developments and identifies the big problems facing consumers, the CMA said.

Andrea Coscelli, chief executive of the CMA, said: “Alongside price-gouging reports, we are now seeing cancellation issues in their thousands.

“So far, the CMA has identified weddings, holiday accommodation and childcare as particular areas of concern.

“The current situation is throwing up challenges for everyone, including businesses, but that does not mean that consumer rights can fall by the wayside.

“If we find evidence that businesses are failing to comply with consumer protection law then we will get tough – that means launching enforcement cases and moving to court action where there is a strong reason to do so.”