63,000 affected as Holidays 4 UK collapsesMost customers to get some cash back

03 August 2011

Turkey beach resort

Turkey specialist tour operator, Holidays 4 UK, went bust on Wednesday 3 August with 13,000 customers abroad and up to 50,000 people with forward bookings.

Most of the 50,000 people due to take holidays, booked through the latest travel firm to go bust, should receive some of their money back.

But many will need to seek advice about whether they will be able to get refunds for their accommodation if they are unable to take it up.

Holidays 4 UK, which traded online as Holidays4U, is the fourth travel company to collapse in just over a month, following the failures of HotelConnect, Gill's Cruise and Dream Holidays. 

Packages and flights protected 

Holidays 4 UK sold package holidays and seats on charter flights that were protected under the Atol scheme run by the Civil Aviation Authority (CAA).

Customers due to travel who had booked package holidays will be able to claim a refund for the holiday under the .

However, people with flight-only will be able to claim a refund under Atol only for the flight – not for any accommodation booked separately.

Holidays 4 UK customers will now have to see if they can find alternative flights so they can take up their accommodation. If not, they may not be able to get a refund.

Doubt over accommodation refunds

Rochelle Turner, Head of Research for Which? Travel said: 'If you have booked a genuine package holiday with Holidays4U then you should be financially protected. Those who have booked flight-only will also be covered under the Atol scheme.

'Unfortunately anyone who booked their accommodation separately won't be so lucky. You should speak to your accommodation provider to see if you can get your money back or re-book for another time, or check to see if these costs are covered by your travel insurance.'

Customers are unlikely to be able to claim for accommodation refunds on their credit cards as accommodation providers can argue the service they have been contracted to provide is still available.

Advice on alternative arrangements

The CAA advised customers who had separate accommodation booked with a travel agent to speak to the agent about whether alternative arrangements can be made to allow them to take their holiday.

However, a spokesman said he believed 'the majority' had flight-only bookings.

The CAA said all 13,000 people already in Turkey would be able to be repatriated at the scheduled end of their holidays.

More from Which? Travel

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