Many holidaymakers now plan so-called "DIY holidays", where you bring together holiday flights and accommodation from different suppliers, such as from airlines and hotel bed-banks. However, despite what many people believe, these holidays are not protected in the way a holiday package bought from a single holiday company would be under the ATOL Scheme.
If you book your travel arrangements.Booking on-line with separate suppliers may seem like a cheap option, but if for example an airline were to stop flying, you would have to make your own arrangements to get home and you could pay considerably more. You may also have to curtail or increase your stay in order to get available flights.
Should an airline fail and you've yet to travel on your holiday you may have difficulties getting to the accommodation you booked separately. If you can’t reach your destination you may lose the money you paid, and if there are last minute alternatives flights, these may not operate on the same day and are likely to be more expensive.
Our advice is to take out travel insurance making sure it covers airline insolvency and any possible indirect loss as a consequence. Be careful though because many policies don’t give this cover, while those that do limit the amount you can claim or have exclusions, so read the small print.
You should also consider paying by credit card, since you should be covered under the Consumer Credit Act 1974. Be careful though, you have to pay more than £100 and you won't be covered for any indirect loss as a consequence.
Many ATOL tour operators websites offer a “flights + hotel” booking facility that lets you build a holiday from a range of holiday and travel options.
If you build your holiday package this way and contract with the ATOL tour operator, you should be fully protected. Check the company has an ATOL, when you book check that all the items you've booked and paid for are covered and make sure you get an ATOL Confirmation Invoice confirming this..
You should also benefit from the rights provided under the Package Travel Regulations because the ATOL tour operator is responsible for each component of the holiday you’ve bought.
Channel 4 News has highlighted the financial risks consumers face if they build "DIY holidays".
The feature, covered by Bridgid Nzekwu explained the protection tour operators with ATOLs provide and how this contrasts with purchasing items separately.
Watch the Channel 4 feature
The Government has also produced some useful advice about financial protection should an airline or travel company fail.
Find out more at direct.gov.uk
Look out for the ATOL logo on websites and in brochures if you are booking online or by telephone
If you are booking with a travel agent, ask the agent to confirm whether ATOL is protecting your entire holiday
Check your travel firm's details here. Type the company name or ATOL number to check your travel company is ATOL protected.
Booking with a credit card. But beware - this does not mean full protection since it will only cover that element that’s been lost, not others bought separately.
You must also have spent at least £100.
There is no guaranteed protection for payments made using a debit card.
Take out travel insurance which covers against insolvency - but check the small print, as many policies do not include this cover, while those that do may only be covered for the element you have lost and not any consequential losses.
