For many years, there have been laws requiring companies who put together package holidays and where a holiday includes a flight, to provide the consumer with financial protection against their own bankruptcy. This will not necessarily be the case for all component services of the holiday they sell to you, such as the Airline, Hotel or Car hire for example. The reality is that unless you have purchased a fully bonded package, through an ATOL agent for example, it is unlikely that there is financial protection for the failure of all component parts of your holiday.
There is also a misconception with regards cover provided by credit card companies. They will usually only cover the company who administered the credit card transaction and not necessarily companies those monies are passed onto. Credit card companies do not usually cover costs under £100 and more importantly repatriation if you are stranded abroad. On the occasions where credit card companies have paid the card holder stranded abroad, they have only paid 50% of the 'original' ticket cost as a maximum and not the cost of a new ticket in order to bring the card holder home. It is always very expensive to purchase a one way ticket home. The credit card company will not necessarily pay for the end suppliers you pre-booked before leaving the United Kingdom, Channel Islands, Isle of Man and the Republic of Ireland such as the hotel, car hire, tours etc which you are unable to use, simply because your airline has failed financially and you are unable to get another flight.
Your holiday is important to you and costly. The frustration and additional cost of any component part of your holiday failing is something you can now avoid. Many factors can cause travel suppliers to financially fail. Since 2007, over 200 airlines have collapsed.
When booking your holiday, ask for written confirmation of not only the financial failure protection you will receive for the company you are booking with but also for all elements of your trip booked with them.
For peace of mind at a low cost, you can have additional financial protection for your holiday from protectmyholiday.com
So what is covered?
This policy covers the insolvency before or after departure of any travel arrangements booked in
the United Kingdom, Channel Islands, Isle of Man and the Republic of Ireland, not forming part of an inclusive holiday and not bonded or insured elsewhere.
These would include:
You are not covered for the following:
- Scheduled airlines
- Youth Hostels
- Car ferries
- Villas abroad & cottages in the United Kingdom, Channel Islands, Isle of Man and the Republic of Ireland
- Railway journeys (including the Eurostar)
- Coach journeys
- Car hire
- Caravan sites / campsites / mobile homes
- Camper rental
- Euro tunnel
- Theme parks such as Disneyland Paris.
The insolvency of the Travel Agent, Tour Operator, the booking agent (unless listed) or consolidator.
It is therefore your commercial decision to book with them and thus your responsibility.
This is a brief summary of the cover given, however we recommend you refer to the full certificate and
policy wording below:
to download a copy of our latest Key Facts & Policy Wording. Or ...
to download a sample of our Insurance Policy.