Failure of Preston Travel (CI) Ltd, ATOL 1272 , 13 February 2014

Information regarding the failure of Preston Travel (CI) Ltd

Preston Travel (CI) Ltd, ATOL 1272 - 13 February 2014

The Civil Aviation Authority (CAA) has stepped in to protect holidaymakers booked with Preston Travel (CI) Ltd after the company ceased trading today, with an estimated 150 consumers currently abroad and approximately 1,700 with forward bookings.

The company, based in Barnet, Hertfordshire held ATOL 1272 since 1981 and sold packages to Egypt, Greece, Cyprus and the Channel Islands. 

Anyone who is currently abroad on a holiday booked with Preston Travel will have tickets for their flight home. These are still valid and people should check-in as normal. The CAA is working with accommodation providers to make sure all affected consumers can remain in their accommodation. If for any reason consumers are required to pay again for their accommodation, they can make a claim for a refund through the ATOL scheme.

Claim Form and Guidance

Consumers due to depart

Consumers due to travel are advised their trip has been cancelled and are advised to make a claim, dependant on who and how you paid, this maybe through the ATOL scheme or via your Credit Card provider.

Consumers holding valid airline tickets may choose to use these and go ahead with their trip, but they do so at their own risk. 

Claim Form and Guidance 

Important Information for Travel Agents

Pipeline Monies

Any payment received by an agent from consumers, for an ATOL protected booking with Preston Travel, is received and held by the agent on behalf of and for the benefit of the Trustees of the Air Travel Trust (ATT) but subject to the agent’s right and obligation to make payment to Preston Travel.

As Preston Travel has failed, agents will now need to hold on to consumer payments on behalf of the Trustees of the ATT until directed otherwise by the Trustees of the ATT.

Agents must not refund consumers any monies unless explicitly directed to do so by the Trustees of the ATT.

The CAA recently emailed all of Preston Travel (CI) Ltd’s travel agents asking for a completed booking schedule.  This booking schedule will allow the CAA to provide each travel agent with definitive instructions about consumer claims and any payments you are holding on behalf of the ATT.  If you have not received this email then please contact the CAA using the email address, or by telephoning 020 7453 6700.

Consumers due to travel on or after 1 March

If you have an agency agreement which complies with the CAA’s requirements and your consumers' booked a Preston travel package without any additional items added by you as a Flight-Plus arranger, your consumer is likely to have a valid claim.  If you wish, you may proceed to re-book any consumers due to travel on or after 1 March 2014.

Please note - If you have created a Flight Plus arrangement by adding car hire and/or accommodation to a Preston Travel flight inclusive package, then you will retain full responsibility for the consumer and the above will not apply.

You should also be aware that Flight-Plus arrangers have obligations to their consumers if a supplier fails. Flight-Plus arrangers are required to replace that part of the trip (at no extra cost to the consumer) or provide a refund for the whole arrangement to the consumer.