How to protect your holiday bookingWhat protection you have

What protection do I have if I book a package holiday?

The Civil Aviation Authority’s Air Travel Organisers' Licensing (Atol)scheme protects people who buy package holidays that include a flight, through UK tour operators.

All UK tour operators and travel firms selling air holiday packages and flights must hold an Atol licence.

What does the Atol scheme cover?

If you've booked for a complete air holiday package or just a flight, Atol protects you from losing money or being stranded abroad if the tour operator goes out of business.

Under the Atol scheme, if your holiday operator goes out of business:

• you will get your money back if you haven’t flown yet.
• if you are already abroad, you will be able to continue your holiday as normal and your costs for coming home will be covered.
  The CAA will try to get you on a return flight as close to your original departure time as possible, but should you need to pay for extra nights, transport and other outgoings, these will be covered, if considered reasonable. For more see www.caa.co.uk.

What is a package holiday?

A package holiday is one where you pay one inclusive price for your flights and accommodation (and any additional services, such as car hire or tours).

As you pay one price, you are unable to tell how much the individual elements cost. The manner in which you book the holiday (ie via a website, a call centre, or in person) is largely irrelevant.

Holidays can be tailormade and still count as a package, so long as the tour operator or travel agent puts an Atol-bonded package together for you.

How should I pay?

Paying for holidays with credit cards is convenient and provides you with a high degree of protection. If you spend between £100 and £30,000 on your holiday you will be covered by Section 75 of the Consumer Credit Act and be entitled to a refund should something going wrong, such as a flight getting cancelled or the carrier going bust. For more see our article on your rights when paying by credit card.

For purchases made with a Visa debit, prepaid and Electron cards, as well as Visa or Mastercard credit card payments, you can also issue a chargeback claim. However, unlike section 75 this is not a legally enshrined right, and claims must be lodged with your provider within 120 days of you being aware of the problem. 

But the good news is there’s no lower or upper limit on the amount you can claim back (so you can claim for losses totalling less than £100).

Should I buy travel insurance?

If you are travelling abroad travel insurance is a must if you want to ensure that you will be flown back to the UK for medical treatment. Travel insurance will also cover you for problems like lost baggage, missed flights due to public transport issues and motorway congestion.

If you have trouble getting insurance due to a pre-existing medical condition the British Insurers Brokers’ Association (BIBA) may help.

For more information and Best Buys see our Travel insurance report.

What documents should I carry?

It is always advisable to keep copies of travel insurance documents, booking details and other arrangements close to hand, as well as your bank account information and contact numbers. If you have a webmail email account you can store copies of the relevant information as downloadable attachments in the event of an emergency.

What if I’ve booked through a travel company? 

The vast majority of travel agents won’t cover you for Scheduled Airline Failure (SAF), although there are exceptions, such as Swiftcover.com.

If you are willing to pay an extra travel insurance premium, you can arrange SAF insurance independently though specialist providers, such as Marcus Hearn. For more see http://www.scheduledairlinefailure.co.uk.

What should I do if I’m overseas and my holiday firm goes bust?

Firstly, contact your travel provider. Also, contact your insurer to ensure your claim is processed as soon as possible.

Should you need to change flights or book into a hotel you can claim reasonable costs under the Atol scheme, and keep all receipts.

If you have paid on your credit card or Visa Debit card, contact your card provider and ask for a Section 75 form. If the bank refuses to accept your claim, else fails lodge a complaint with the Financial Ombudsman Service (FOS).