The Civil Aviation Authority has warned consumers to check travel websites and brochures carry an ATOL logo before booking a holiday in the post-Christmas sales.
It estimates 18 million Britons arranged their own holiday flight and accommodation this year rather than book a tour operator’s package, with many wrongly believing they were financially protected if any of the suppliers ceased trading.
CAA consumer protection group director Richard Jackson said: “More and more people pay separate companies for flights and accommodation and don’t realise they could lose their money or be stranded abroad.”
The CAA oversees the consumer financial-protection scheme linked to the Air Travel Organiser’s Licence and advises consumers buying online not to book until they are certain they are covered. “Ask the travel firm whether you will get a full refund or be repatriated if a supplier stops trading,” it suggests.
It warns that most travel insurance policies do not cover insolvency, paying by credit card only covers the service lost, not services booked separately, and debit cards offer no consumer protection.
Financing of the ATOL system will change next April, with a £1 levy or ATOL Protection Contribution (APC) added to package holiday prices. The CAA has promised a consumer campaign to promote awareness of the scheme, but has yet to announce details or the funds available.