In the unfortunate event that one of the companies involved in your holiday goes bust, you’ll want to be sure that you can get your money back. To help you understand what to do to make sure your holiday is financially protected, we’ve busted some jargon on your behalf.
If You Are Getting A Flight, Make Sure Your Travel Is ATOL Protected
We’ve all heard of this, but do many holidaymakers really know what it means? ATOL stands for Air Travel Organisers Licencing and it offers financial protection for those who are travelling by air. All UK companies selling air travel must have an ATOL certificate.
If the company goes into administration before you travel, you’ll get your money back. If you are already travelling, you can finish your holiday and get home at no extra cost. If the company is not ATOL protected, there’s no guarantee you’ll get your hard earned cash back.
Use An ABTA Travel Agent
Members of ABTA (Association of British Travel Agents) are bound by a code of conduct and therefore much more likely to act responsibly if a link in the chain fails. However, don’t take the ABTA stamp as a definite when it comes to financial protection, always ask your agent the big question… “Will I be refunded if the airline, hotel, cruise company… goes into administration?”
Book A Package Holiday With An ABTA Agent
Package holidays booked via an ABTA agent are automatically financially protected.
Get Travel Insurance That Covers Companies Going Bust
Not all travel insurance providers policies this type of cover, so make sure you call yours and get the cover you are looking for. Remember to tell them about all operators – airlines, hotels, hire cars etc. WorldwideInsure.com are regulated by the FCA (Financial Conduct Authority), a member of BIBA (British Insurance Brokers Association), and highly rated on Trustpilot.
Pay By Credit Card
If you pay for your holiday on your credit card and the company or one of the companies goes under, you are covered by section 75 of consumer credit act, and can claim via your credit card company. This is because under Section 75, the credit card company is liable, along with the operator, for any breach of contract by the company that has gone into administration. It is worth noting that you can make a claim via your credit card provider as well as directly with the company at the same time. You will obviously only get one refund though!