Holiday Insider Travel Advice: Holiday Protection Guide

TRAVEL GUIDE: HOLIDAY PROTECTION EXPLAINED

Last year the Icelandic Ash cloud brought havoc to many holidaymakers planning to go on holiday with many suffering cancelled flights, postponed holidays and some even having to stay at their destination for longer, unable to get home until a week later. The occurrence of the ash cloud crisis not only cost the aviation industry £1bn it also highlighted to many travellers that it’s worth paying that little bit extra for your holiday to be protected or insured in order to give you peace of mind.

But where do you start? Who protects you as a consumer if your flight is cancelled? Will your holiday company pay to get you home if you end up stranded? There are many different forms of protection and not all cover you as you’d expect them to. To help you try to understand who/how/what protection you can get please read the article below. If you think it’s useful please share on facebook/twitter with your friends. If you have any additional comments or recommendations please comment at the end of the post.

ATOL (Air Travel Organisers Licence)
What is it: ATOL protection is a financial protection scheme created and enforced by the Civil Aviation Authority. All tour opertors selling a holiday package that includes flights must have an ATOL bond. The CAA checks each operator before awarding an ATOL bond, to ensure that the company is credible and has a trading history.

When you book a holiday that is ATOL protected you wil receive an ATOL receipt and confirmation invoice. The whole holiday cost should be detailed on this receipt and invoice. If it’s split into two parts or through two suppliers your holiday may not be protected by the ATOL protection.

What does it do: ATOL provides financial protection for holiday packages that include flights. If the tour operator goes out of business the CAA will ensure you get home and will refund you any monies owed. If the airline used as part of the package fails then the tour operator is responsible for making sure you are placed on alternative flights and get home safetly.

When does it apply: ATOL provides protection if the tour opertor you booked with goes bust or if the airline used as part of the holiday package goes out of business.  With regards to the ash crisis, ATOL protected tour operators made sure all of their customers were looked after in hotels if abroad and then flown home as soon as possible, or they were given the option to refund or re-book their holiday.

When does it not apply: ATOL protected holidays can be sold directly through operators or via travel agents/websites. In this case the agents are acting as an agent selling ‘atol protected holidays’ or they may be an ATOL protected agent. However, travel agents can also sell holidays that are not ATOL protected and can also ‘package’ a holiday so that it consists of two elements, meaning ATOL may also not apply for the whole holiday if at all. Check with your agent when you book if you are worried that your holiday is not ATOL protected and ask if the whole holiday is protected or just elements of it e.g. protected flights only plus non-protected accommodation. If you love last minute holidays and ‘DIY’ them yourself by booking your own accommodation and flights separately then you won’t be covered by ATOL. If you book just a flight directly with a scheduled airline you won’t be protected by ATOL.

How to check: Check the CAA’s website at www.atol.org.uk for a list of companies that have ATOL.

ABTA (Association of British Travel Agents)
What is it: ABTA is a regulatory body within the travel industry. All companies that become part of ABTA follow a strict code of conduct to behave in responsible way towards their customers.

What does it do: Despite the name and brand of ABTA being widely recognised by holidaymakers the association and ABTA brand doesn’t actually give any financial guarantee on a holiday. ABTA will act as a arbitrator to help settle disputes between holidaymakers and ABTA travel agents and if you have a complaint.

How to check: Visit abta’s website for a full list of ABTA travel agent members.

TTA (Travel Trust Association)/TRUST FUNDS
What is it: The Travel Trust Association is an association setup to provide protection to holidaymakers through its members.
What does it do: It protects the holidaymaker against failure of a member and ensures your holiday is protected 100% financially. It works by depositing your holiday money into a trust account which holds your money, therefore ensuring that the money is always safe. The Travel Trust Association also has a financial guarantee obligation that covers its members up to a maximum of £11,000 per passenger. If a TTA member goes bust your money will be protected in the trust account. If the money isn’t there for any reason then the TTA guarantee will ensure you get your money back.
How to check: Check for members of the TTA on their website www.traveltrust.co.uk

AITO (Association of Independent Tour Operators)
What is it: It is an association for smaller more specialist tour operators who sell specialist holidays.
What does it do: As an association it ensures it members abide by a Quality Charter and that all holidays booked through its members are 100% financially protected. If an AITO operator goes out of business for any reason the cost of your holiday will be fully reimbursed or AITO will ensure that you can complete your holiday or are fully repatriated back home.
How to check: Visit the AITO website at www.aito.co.uk to search for members or to learn more about the organisation.

TRAVEL INSURANCE/ SUPPLIER FAILURE COVER / SCHEDULED AIRLINE FAILURE INSURANCE
You should always purchase ‘normal’ travel insurance when travelling on holiday regardless of whether you then choose to add on SFC/SAFI aswell. However lots of standard travel insurance policiies do not cover insolvency of the holiday provider. In this case you will need to take out an extra protection policy to cover your holiday. There are many options on the market and there has been an increase in policies being offered since the ash crisis last year. Many organisations will offer extra protection cover to their members who may choose to add these options onto each booking. Other agents/tour operators may run their own protection schemes as part of their service also. Look out for relevant information/logos on each suppliers website and ask at the time of booking if insurance is an option. If you choose to use SAFI/SFC or another form of protection insurance please make sure you read the small print and double check which airlines are included as some providers may exclude particular airlines.

CREDIT CARD PAYMENT
If you pay for your holiday using your credit card you should be protected by the Consumer Credit Act 1974. This is provided you pay more than £100 and less than £30,000. It will only apply for the services that you paid for on your credit card though, not any additional services you may have booked.

FLIGHT DELAYS/CANCELLATIONS AND DENIED BOARDING
It’s worth noting that airlines have to assist passengers when there is a delay/cancellation or they are denied boarding, under European law EC regulation 261/2004.

An airline is obligated to offer you care if the flight is delayed. If your arrival delay exceeds three hours you may be entitled to compensation. If the delay is more than five hours – you can request a refund and choose not to travel. In some cases you can also be entitled to compensation if your flight is cancelled or you are denied boarding. If you need to claim make sure you keep all documents and ask for a written statement about the incident in question from the airline before you complain. If you are offered vouchers by the airline bear in mind these may limit your rights to compensation.

OTHER SOURCES OF INFORMATION:
Foreign and Commonwealth Office – FCO.gov.uk
ATOL – atol.org.uk
Goverment – direct.gov.uk
ABTA – abta.com
TTA – traveltrust.co.uk

THE FUTURE OF HOLIDAY PROTECTION??
Current Goverment reform of the holiday protection system predicts we will see a new ‘flight plus’ ATOL come into play next year. These are holidays where a flight is included plus other elements that were bought within a specified short time period. ATOL certificates will also be standardised and supplied with each ATOL booking plus holiday companies will have to be more transparent about the level of holiday protection they offer and whether they are protected by ATOL. The reform will not cover DIY holidays where the elemnts of a holiday are booked separately or flight only bookings. Travel Industry firms have complained that the reforms don’t go far enough as they don’t include airline only sales or click through sales. The reforms are currently in a consultation period and will not apply until next year.