2009
Consumer Direct is advising people planning their summer holiday to check how they are financially protected should their airline or tour operator go bust.
Over the last twelve months, Consumer Direct, the OFT-managed advice service, has received hundreds of calls from travellers trying to get refunds after their airline or travel operator ceased trading, many of whom did not have the financial protection they expected.
Michele Shambrook, Operations Manager for Consumer Direct said: 'Thankfully, the vast majority of people have trouble-free holidays, but when things go wrong, it can be a big financial and emotional blow if you don't have the protection you expect.
'The protection available depends on whether you are booking a package holiday or making your own arrangements so it's important to ask the right questions at the time of booking and keep all the relevant paperwork.'
Package holidays
Companies selling package holidays must offer protection to prevent customers from losing money and help to sort out any practical problems if they, or the airline, goes bust.
Tour operators selling package holidays by air must hold an Air Travel Organiser’s Licence (ATOL) from the Civil Aviation Authority (CAA).
Consumer Direct has the following tips:
1. Check whether your tour operator has an ATOL licence by checking the Civil Aviation Authority's website at www.caa.co.uk/atol
2. Check whether your trip counts as a package holiday - Some airlines offer holiday packages and should therefore provide financial protection. Other airlines offer flights and accommodation or car hire , sometimes through website links to other independent sites. These are often separate purchases from a different company, and will not count as a package holiday and won't include package holiday protection. You should check whether either company offers protection and, if so, what this covers.
If you are abroad on a package holiday and your airline fails, your tour operator should take care of you at no extra expense. If an airline fails before you travel, your tour operator must offer a replacement holiday or a refund. If the tour operator fails, and it has an ATOL, the CAA will either get you home if you are already on holiday or will make sure you get a full refund if you have not travelled.
Independent travel
If you book a flight with the airline, you will not be covered by ATOL if the airline fails. However, you can protect yourself by booking with a travel firm that protects flights under its ATOL. When booking check that you receive confirmation of your ATOL protection, or you are provided with a Scheduled Airline Failure Insurance (SAFI) policy.
If you book direct with an airline, you may wish to pay by credit card which provides financial protection under the Consumer Credit Act (1974) for purchases over £100 and up to £30,000. If you don't use a credit card, it may be worth considering appropriate travel insurance. Some policies cover airline failure, usually by including SAFI. However, many policies don’t include SAFI and some insurance providers may exclude particular airlines so you need to check carefully.
Further details on financial protections and advice on how to make a claim in the event of an airline or travel company going bust are available at www.consumerdirect.gov.uk or www.atol.org.uk . For individual advice from Consumer Direct, call 08454 04 05 06.
