In the UK flight companies must retain the “Air Travel Organiser’s Licence” (ATOL); a license that is certainly managed through the CAA. ATOL is often a financial guarantee that delivers the funds to safeguard customers should an airline company fail. ATOL primarily covers air travel nevertheless it can extend to holiday accommodation if bought included in a package. The degree of ATOL protection is dictated through your travel company so your first move must be to check your invoice for that ATOL logo and see the terms of the ATOL agreement to determine the level of financial protection you might have.
UK based airlines are not protected by ATOL. Insurance and the nature with the insolvency usually dictate how much compensation you will get from airline insolvency. Airline operators that offer “flights+hotel” are typically not protected by ATOL unless they have a partnership with the flight’s company. So what level of protection is in spot for airlines? In the event of delays and cancellations, European law requires airlines to organize alternative flights and to offer reimbursement for refreshments, communications, and accommodation in the case of prolonged delays and overnight stays. However, the same coverage doesn’t extend to airline insolvencies.
So what cover do you’ve if an airline goes bust?
If you took care of your holiday simply by using a bank card and the payment was over 100 you are protected from the UK Consumer Credit Act. This gives you the ability to cancel the payment going to the airline via your accredited bank. Also, some holiday insurance companies offer airline insolvency protection – that is subject to the terms from the insurance, therefore, you must look and check along with your insurer.
As mentioned earlier on ATOL doesn’t cover additional bookings which can be made outside in the package holiday. DIY holidays which could appear cheaper offer much less expensive protection than package holidays. Any additional features with businesses that are not covered by ATOL are subject to the companies’ cancellation procedure. If you might have organized any equipment hire, additional accommodation, travel money, or even airport parking (no matter if it was Gatwick North Airport Parking or hotel parking) then these holiday extras are susceptible to their very own cancellation and refunds procedures.
This uncertainty has triggered some companies offering additional waiver policies that allow consumers to receive conditional refunds should their travel plans be disturbed. For example Park and Go, a UK based airport vehicle company offers customers a 1.99-2.99 waiver option that gives customers the capability to cancel their airport parking up to the time the parking is born giving customers a full refund (without the presence of waiver). It is crucial that you review cancellation procedures as some hotels and services do charge clients for last-second cancellations and in many cases for not utilizing their services.
The key point isn’t to panic should you hear rumblings of insolvency – constantly be sure you’ve got the right type of protection in terms of insurance and you can’t get it wrong.
Here is a listing of tips to consider when booking your next holiday:
If buying flight+hotel deals then make sure you check the coverage from the ATOL protection – enable you to get an ATOL confirmation invoice and look out for ATOL receipt containing the name and ATOL number of the ATOL holder your booking is with. This will ensure that your payment just isn’t at an increased risk if the travel agent stops trading. If there’s no mention of an ATOL holder make certain the agent/airline was a member of the Association of British Travel Agents (ABTA), Travel Trust Association (TTA), or Global Travel Group; then contact that organization.
Book the adequate travel cover
ensure your insurance covers airline insolvency and any possible indirect loss. Pay by charge card – however, remember you’ve to pay greater than 100 and you also will not be covered for just about any indirect loss for that reason (e.g. accommodation if booked with non-ATOL supplier). Check cancellation terms of your suppliers – suppliers that supply waivers upfront you will save money in the case of an issue or short notice cancellations.