| In the UK air travel companies are required to hold | | | | accommodation, travel money or even airport car |
| the "Air Travel Organiser's Licence" (ATOL); a licence | | | | parking (regardless of whether it was Gatwick North |
| that is managed by the CAA. ATOL is a financial | | | | Airport Parking or hotel parking) then all of these |
| guarantee that provides the funds to protect | | | | holiday extras are subject to their own cancellation |
| customers should an airline company fail. ATOL | | | | and refunds procedures. This uncertainty has led to |
| primarily covers air travel however it can extend to | | | | some companies offering additional waiver policies |
| holiday accommodation if bought as part of a | | | | that allow consumers to receive conditional refunds |
| package. The level of ATOL protection is dictated by | | | | should their travel plans be disturbed. For example |
| your travel company so your first move should be to | | | | Park and Go, a UK based airport car parking |
| check your invoice for the ATOL logo and read the | | | | company, offers customers a £1.99-2.99 waiver |
| terms of the ATOL agreement to find out the level | | | | option that gives customers the ability to cancel their |
| of financial protection you have. | | | | car parking up to time the parking is due giving |
| UK based airlines are not protected by ATOL. | | | | customers a full refund (minus the waiver). It is |
| Insurance and the nature of the insolvency usually | | | | important to review cancellation procedures as some |
| dictate the level of compensation you will get from | | | | hotels and services do charge clients for last minute |
| airline insolvency. Airline operators that offer | | | | cancellations and even for not using their services. |
| "flights+hotel" are mostly not protected by ATOL | | | | The key point is not to panic if you hear rumblings of |
| unless they have an agreement with an air travel | | | | insolvency - always make sure you have the right |
| company. So what level of protection is in place for | | | | kind of protection in terms of insurance and you can't |
| airlines? In the event of delays and cancellations, | | | | really go wrong. Here is a list of key points to |
| European law requires airlines to organise alternative | | | | consider when booking your next holiday: |
| flights and to offer reimbursement for refreshments, | | | | - If buying flight+hotel deals then make sure you |
| communications and accommodation in the event of | | | | check the coverage of the ATOL protection - ensure |
| prolonged delays and overnight stays. However the | | | | you get an ATOL confirmation invoice and look out |
| same coverage does not extend to airline | | | | for ATOL receipt containing the name and ATOL |
| insolvencies. | | | | number of the ATOL holder your booking is with. |
| So what cover do you have if an airline goes bust? If | | | | This will ensure that your payment is not at risk if |
| you paid for your trip by using a credit card and the | | | | the travel agent stops trading. |
| payment was over £100 then you are protected | | | | - If there is no reference to an ATOL holder check |
| by the UK Consumer Credit Act. This gives you the | | | | that the agent/airline was a member of the |
| ability to cancel the payment going to the airline via | | | | Association of British Travel Agents (ABTA), Travel |
| your accredited bank. In addition some travel | | | | Trust Association (TTA) or the Global Travel Group; |
| insurance companies offer airline insolvency protection | | | | then contact that organisation. |
| - this is subject to the terms of the insurance so it is | | | | - Book the adequate travel insurance - make sure |
| important to keep an eye out and check with your | | | | your insurance covers airline insolvency and any |
| insurer. | | | | possible indirect loss. |
| As previously mentioned ATOL does not cover | | | | - Pay by credit card - however remember you have |
| additional bookings that are made outside of the | | | | to pay more than £100 and you won't be covered |
| package holiday. DIY holidays that may appear | | | | for any indirect loss as a consequence (e.g. |
| cheaper also offer far less protection than package | | | | accommodation if booked with non-ATOL supplier). |
| holidays. Any additional features with companies that | | | | - Check cancellation terms of your suppliers - |
| are not covered by ATOL are subject to the | | | | suppliers that offer waivers upfront could save you |
| companies' own cancellation procedure. If you have | | | | money in the event of an issue or short notice |
| organised any equipment hire, additional | | | | cancellations. |