Don’t let this mistake ruin your summer vacation

Look, you may not be able to control the weather or whether or not your flight gets cancelled, but there is one simple thing travelers can do to *try* to make their summer vacation go as smoothly as possible.

With Europe’s biggest tour operator going bust just as the holiday season begins, there may be no better time for holidaymakers to secure their hard-earned summer plans in advance.

To ease the heavy lifting of such an endeavour, travel insurance experts at Quotezone.co.uk have analysed delays, cancellations and even supplier collapses to help London holidaymakers overcome travel setbacks.

In short, financial and legal protections for travellers differ greatly depending on what has been booked and where the purchase was made, so Quotezone has compiled reminders about the protections offered by the Air Travel Organisers Licence (ATOL) and other relevant regulations.

Nine airlines filed for bankruptcy last year as the travel industry struggles to find its feet (or rather, its wings) in the wake of Covid-19 – one of them being London favourite Flybe.

ATOL is a financial protection scheme administered by the Civil Aviation Authority (CAA) in the UK and is designed to protect consumers who have purchased package holidays or flights from UK-based travel companies in the event that the company ceases trading or goes bankrupt.

However, the level of protection for tourists varies depending on whether they have booked a package holiday or made their own arrangements.

Flight delays and cancellations also play a big part in ruining holidays and, especially as most travellers can probably relate to it, it’s something that tourists in London should make sure they have protection against.

At London airports, according to the latest data from the Civil Aviation Authority (the sample was taken during the month of April 2024), 1,080 flights were cancelled and 434 flights suffered significant delays of between 2 and 3 hours or more. At Heathrow alone, 643 flights were cancelled.

If a flight is cancelled, passengers are legally entitled to request a full refund from the airline or a replacement flight that will allow travelers to reach their final destination.

In the event of delays of three hours or more, travellers can also request compensation directly from the airline. However, the airline will rarely grant compensation if the delay was due to reasons beyond its control, such as adverse weather conditions.

Most standard travel insurance policies cover cancellation or interruption compensation if the traveller has to cancel or shorten their holiday for reasons beyond their control.

They will also usually cover them in the event of a lost or delayed departure, covering any expenses they may incur if the flight is postponed or if they miss it for reasons beyond their control.

Greg Wilson, CEO and travel insurance expert at Quotezone, said: ‘As the holiday season approaches and itineraries are being finalised, we wanted to remind Londoners of their rights in the event of travel delays, cancellations or even bankruptcy of holiday partners.

‘With the current financial problems in the UK, 15% of holidaymakers are looking for cheaper deals online and booking with lesser-known sites and tour operators to help them find savings.*’

Wilson added: “This makes it crucial for travellers to do more research before booking, ensuring they are protected by recognised travel agencies and have a travel insurance policy in place as soon as they book.

‘Holidaymakers should be sure to look for the ATOL logo and check details of travel insurance – for example, if flights are booked directly with the airline, it is sensible to add airline failure or end-provider failure insurance, for protection in the event of bankruptcy.’

How can London travellers protect themselves before holiday chaos ensues?

Find out if your booking is ATOL protected

ATOL protection applies to most overseas air travel booked with UK travel companies. If you are covered by ATOL, your travel company should have given you an ATOL certificate when you booked. Under the ATOL scheme, if a company closes down and you can no longer make your trip, you will be refunded the amount of your booking. If this happens when you are abroad, don’t panic. You will be able to finish your holiday and fly home as you had originally planned.

Check out the vacation packages

A package holiday is when you book more than one part of your holiday through the same travel agent or website, for example your hotel and your flight tickets. Fortunately, package holidays have both financial and legal protection, and the Package Travel and Linked Travel Arrangements Regulations 2018 require package holiday organisers to provide protection for your money and to get you home if necessary. This means that all companies selling package holidays must offer the same level of protection. This protection will stop you losing money and will also help you deal with any practical issues should the company or airline you are flying with go bust.

Consider organizing linked trips

A linked travel agreement is when you buy part of your holiday and are then asked to buy another part via a click within 24 hours. For example, if you buy a flight and are then asked to buy a rental car via the same website. Linked travel agreements are not covered by ATOL, but do benefit from other protections in the event of insolvency. A linked travel agreement only has financial protection, and this is at a lower level than if you bought a package holiday. Financial protection provides some cover if the company that arranged your linked travel agreement goes bust. As there is no legal protection covering the whole of the linked travel agreement, any complaints about the provision of services should be directed to the service providers themselves.

Consider traveling independently

The Civil Aviation (Licensing of Air Travel Organisers) Regulations 2012 are overseen by the CAA and require tour operators selling flight-only services to provide protection for your money and get you home if necessary. However, this protection does not apply to flights purchased directly from an airline. If you book a flight directly with an airline, you will unfortunately not be covered by ATOL. This means that if the airline you booked with goes bust while you are abroad, you will need to book a return flight with another airline. However, if you have arranged for airline failure or end-provider failure insurance added to your travel insurance policy, you should be able to get reimbursed for any additional flight or hotel expenses.

Buy travel insurance, but read the fine print

Not all travel insurance policies include insolvency protection, so it’s vital to check the details of your policy. Insolvency protection ensures that if your travel provider goes bust, your policy will cover things like reimbursements of expenses paid, repatriation costs and alternative travel arrangements. Comparing travel insurance can help holidaymakers find real savings – by comparing travel insurance quotes for annual policies and for individual trips, you may find savings. Also, compare worldwide travel insurance and travel insurance for Europe to make sure all destinations booked during the year are covered by the cheapest policy possible.

Take advantage of credit card reservations

If you have paid for your holiday by credit card, you may have additional protections under Section 75 of the Consumer Credit Act. This legislation makes your credit card issuer jointly liable if something goes wrong, providing another avenue for refunds.

For more helpful information on preparing for your holiday, read Tax Increases During European Holidays before you travel.

*Quotezone.co.uk results are based on a random survey of 1,000 respondents across the UK during June 2024, representing a margin of error of approximately 5% at a 95% confidence level.

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