Financial Protection for Your Holiday - Buyer Beware!

Holidays are very important - especially in these stressful times.  We all expect to relax when we go away and have the peace of mind of knowing that our holiday is secure.  In today’s uncertain financial climate travellers are wise to take the time to educate themselves about financial protection for their holidays before booking.  This doesn’t just mean taking out travel insurance - even though adequate travel insurance is an element of planning your holiday which should never be skipped.  (The cost of travel insurance is minimal compared to the crippling expenses you may encounter if illness or an accident should strike when abroad). 

It’s easy to pick a holiday out of a colourful brochure – but in your excitement do you stop to ask or check to see whether the company has a financial protection scheme in place?  Do you know where you would stand in the event the company should go bankrupt, taking your deposit and leaving you stranded abroad or with your holiday dreams in ruins?

Don’t despair - It is not as complicated and confusing as it may at first appear! 

There are several financial protection schemes in place to protect travellers, but it is up to you as the customer to choose a reputable travel company and check that your travel provider has an Air Travel Organisers Licence (ATOL), or membership with ABTA, ATOL, ABTOT, FTO or AITO. For coach holidays check they have BCH (for bonded coach holidays). 

Many travellers prefer to build their own DIY holiday using different suppliers - but they may be putting their money at risk with no ATOL cover.  It is better to use an ATOL-licensed operator which offers the facility to build individual components of a holiday on its website – but again always check to make sure they have a financial protection scheme or insurance in place.  Also, booking directly with an airline or purchasing a scheduled flight and receiving the ticket within 24-hours of payment will leave you without ATOL protection!

Pay by credit card to have a chance of a refund through the Consumer Credit Act 1974 - which protects payments of over £100.  However, air fares are usually viewed as one-way segments, rather than the total round-trip fare, which may bring the amounts to less than £100 – and consequently no refund!   Look for travel insurance which offers scheduled airline failure for additional protection. 

For an excellent explanation of the various financial protection schemes visit the Foreign and Commonwealth office website by clicking here.  For ATOL click here, for ABTA click here.

To obtain a low-cost quote for all your travel insurance needs click here

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