Some travel firms based in other European countries are now selling flight inclusive holidays in the UK without ATOL
protection. Before making a booking with a firm which does not hold an ATOL, you should consider the issues set out
below.
Information on Low Cost Travel Group
Advice for people who have bookings with
Lowcostholidays.
What happens when there is no ATOL?
Travel firms established in other countries within Europe are not required by law to hold an ATOL when they sell
flight-inclusive holidays in the UK. (Europe in this instance means countries in the European Economic Area.) However,
under European legislation, travel firms selling package holidays within the EU must provide financial protection to
consumers. In these circumstances, the consumer must go to the protection authority of the country in which the
business is based for that protection. Not all countries operate comprehensive protection schemes and in some cases
financial protection will be more limited than ATOL. If your holiday is not ATOL protected, the CAA will not be able to
assist you and you will need to deal with the protection authority of that European country.
Travel firms based outside Europe, for example those based in the USA, are required to hold an ATOL in order to sell
flight inclusive holidays to the UK.
What are the risks?
Booking a holiday without financial protection or with limited financial protection puts your holiday and your money
at risk.
You could be left out of pocket with no holiday or even stranded abroad if your travel firm collapses while you are
abroad. The standard of financial protection offered by European countries other than the UK is variable and although
some provide protection that is comparable to the UK, others do not. The following are issues that might arise.
Find and pay for your own way home |
If your travel firm collapses while you are on holiday, you may need to make your own arrangements to
get home. If your return flights cost more than the price you originally paid, you are unlikely to be able to
reclaim the difference. |
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Pay again for your hotel |
Even if you paid your travel firm in full before departing on your holiday, it is likely that your holiday
accommodation owner will not have been paid by your travel firm and will demand, during your stay, that you pay a
second time. |
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Delays in getting money back |
If your travel firm collapses before you travel, you will want to reclaim any money you have paid and you may
need to make a claim from the protection authority of the country in which the travel business was based. Claims for
repatriation costs or refunds may have to be made through a Court in that country, which can take many months or
over a year. |
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Limited refund |
In some cases, the funds available for protection may total less than the claims of all a collapsed travel
firm's customers, meaning you may not receive a full refund. In European countries where there is no protection
scheme in place, you are unlikely to receive any refund. |
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How do I check my protection?
Any UK customers booking trips with European firms without ATOL protection should consider the advice below before
making a booking.
Why should you book an ATOL protected holiday with an ATOL holder?
For many of us, price and quality are important things when booking a holiday but it is also essential to know that
if something goes wrong, you will get the following protection when you book with an ATOL holder:
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1. Practical assistance to continue your holiday and return home. |
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2. A full refund of money paid for holidays not received. |
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3. A simple, direct and easy to follow claims process. |
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ATOL provides you with this comprehensive financial protection when you book with an ATOL holder and are issued with
a valid ATOL Certificate. Information on the terms of the ATOL scheme are set out on the ATOL Certificate but in short
the scheme ensures that if you are on holiday at the time the ATOL holder fails, the CAA will arrange for you to be
looked after in resort and returned to the UK at the end of your holiday with no additional cost to you. If the ATOL
holder goes bust before your holiday starts, you will be able to claim a full refund from the CAA for the cost of your
holiday.
When you book an ATOL protected trip, you will immediately receive an ATOL Certificate from the ATOL holder. If you
do not get an ATOL Certificate, in the first instance ask the ATOL holder why not, and if they still do not produce an
ATOL Certificate please contact the CAA ATOL team. The ATOL Certificate
is important because it is your evidence of your financial protection and tells you who to contact if your travel firm
collapses.
Can I protect myself by other means?
Many consumers may choose to consider protection from other sources such as travel insurance or credit cards but you
should not assume that you will be protected by these methods. Many insurance policies do not include this protection
or may be subject to terms and exclusions. Always check with your insurance or credit card provider before making a
booking.