Whether you are looking forward to the trip of a lifetime, taking a break in the sun or buying a British weather lottery ticket, when you book a holiday it pays to protect yourself. We explain how.
- What if my travel agent goes out of business?
- What counts as a package holiday?
- How should my package holiday be protected?
- What if I have only bought a flight?
- Should I ask for proof?
- I've booked a cottage in the UK, is my money protected?
- Won't I be covered by travel insurance?
- How should I pay?
- Is there anything else I should be aware of?
What if my travel agent goes out of business?
It’s very important to be certain that your money will be safe should your travel agent go out of business. Your protection will depend on the holiday you buy and where you buy it, so always check before you part with any money.
In general, providers have a legal obligation to provide protection for package holidays that include flights and some flight-only arrangements through the ATOL scheme. However, there is no legal requirement to protect flights bought direct from an airline or accommodation-only holidays.
- Find out if your holiday will be covered by the ATOL scheme before you book
- If not, find out what other protection is in place, and look closely at terms and conditions
What counts as a package holiday?
A package holiday is a travel deal whereby two or more elements (such as flights and accommodation) are sold together as a single package.
How should my package holiday be protected?
Package holiday companies are required by law to provide protection for your money and to ensure you can get home should the worst happen.
If your package holiday includes a flight, then it must be protected under the Air Travel Organiser’s Licensing (ATOL) scheme, operated by the civil aviation authority.
If it does not include a flight, then it should be protected via a bond held with a trade association, an insurance policy or by keeping your money in a trust account. Always check that these arrangements are in place before you book.
Under the scheme you will be reimbursed the cost of your holiday should the operator go bust before you travel or if your holiday is cancelled for some other reason (e.g. unavailability of flights or accommodation). If the operator goes bust whilst you are abroad, the scheme will ensure you get home safely, and at no further cost.
- Know your rights before you book
- Only book a package holiday that is protected under the ATOL scheme
- Do not allow a travel agent to charge you for ATOL protection – this should be included in the cost of every holiday, and is not an optional extra
What if I have only bought a flight?
First of all, it is important to remember that flights bought direct from an airline are not covered by regulations demanding that your money is protected (or to ensure that you can get home). Operators may offer protection voluntarily, but it is always best to check before booking.
Flight-only holidays bought through a tour operator are, however, covered by regulations that ensure you are protected under the ATOL scheme. Flights bought from a travel agent may not be, so always check. An ABTA travel agent may be able to offer insurance to protect your money.
- Check to see how your flights are protected
- Read any terms and conditions closely before buying
Should I ask for proof?
Yes, always ask for evidence that your holiday, and your money, is protected. Request all documentation detailing your rights and protection and keep it in case you need to make a claim - that includes taking it on holiday with you. The documentation should give details of how to make a claim should the need arise.
- Always request documentation and take it with you on holiday
I’ve booked a cottage in the UK, is my money protected?
As ever, check the terms and conditions before you book. Many large holiday let operators in the UK will offer a protection plan or some kind of insurance scheme to protect your money should your holiday be cancelled - either by you (for instance due to illness) or by the cottage operator. However, the level of cover and any exceptions will vary from operator to operator, so check the terms and conditions.
It is often overlooked, but you can take out cancellation insurance to cover your UK holiday. The cost of cover varies of course, but is usually inexpensive, so well worth a look if you are worried about protecting your holiday in the UK. As always, check the terms and conditions, particularly the exclusions before you buy insurance.
- Find out how your cottage booking and money will be protected before you book
- Look into cancellation insurance if the operator offers no protection (or insufficient protection)
Won’t I be covered by travel insurance?
Taking out travel insurance should be an essential part of your holiday planning, for a whole host of reasons (from health and loss or theft of personal belongings to cancellation). Beware that not all policies will cover every cancellation eventuality, so check before you buy.
In particular, look at clauses covering issues such as:
- Cancellation of your holiday - either by you (for instance through illness) or the operator (for instance if they should go bust)
- Missed flights - particularly clauses governing issues such as road works and other travel problems on your way to the airport
- Scheduled airline failure - to protect you if your airline collapses and you've booked a flight directly with an airline, or as part of a DIY package.
How should I pay?
If at all possible, pay for your holiday using a credit card.
Doing so will mean that the value of your holiday (between £100 and £30,000) will be covered by Section 75 of The Consumer Credit Act, ensuring you will get your money back should something going wrong, such as a flight being cancelled or the carrier going out of business.
You don’t even have to pay for the whole holiday on your card to get these rights - for instance paying a deposit on your card will get you the same protection.
- Use a credit card to pay for your holiday, or your deposit, if at all possible
- If you can't use a credit card, use a debit card so you could claim Chargeback if things go wrong.
- Understand your rights under the Consumer Credit Act – this is useful whether you are going on holiday or not
Is there anything else I should be aware of?
Yes, a number of considerations are:
- Take all important documentation with you when you travel - including travel insurance and booking documents
- Let your bank know you are travelling abroad. Sometimes banks' automated fraud systems mistake use of cards abroad for suspicious activity and suspend them. This could leave you without access to your money whilst on holiday - letting the bank know before you travel will prevent this kind of problem arising
- Register with the Foreign Office before you travel - particularly if you are going off the beaten track. The LOCATE scheme is designed to ensure that the British Embassy in your destination country knows you are coming and can help you more effectively in the event of an emergency
- Make sure your mobile phone is 'roaming' - in other words will automatically pick up available networks overseas. Calls will be more expensive, but your phone could be a vital piece of equipment should something go wrong. Check with your operator before you travel
- Clearly the steps you take to protect your holiday and yourself will depend on the country you are travelling to. Research your destination by visiting the Foreign Office website
