Berkshire-based travel agency Great Little Escapes broke in earlier this week, putting thousands of vacationers in uncertainty. The collapse of travel agencies can turn escape predictions into stressful and confusing ordeals.
When planning a holiday, the potential failure of an airline, hotel or cruise company is usually the farthest from your heart. Unfortunately, it happens and when it is done, it can be painful and expensive.
What happens when a travel agency gets bust?
“We've seen a lot of effort into making it easier to understand,” said Chris Payne, a compliance expert at Total Travel Protection. “If you were to deliver some of your travel plans, such as an airline, hotel, ferry operator, car rental company, cruise line, etc., it refers to the bankruptcy or financial collapse of a travel service provider, such as a travel service provider.
What if your travel agency gets bust
If the travel agency gets bust, the first step is to determine if you have booked a package holiday, also known as Atol Protected. If you book a luggage vacation through a UK travel agency and receive your ATOL certificate, you are in a favorable position. An ATOL scheme managed by the Civil Aviation Authority will protect you in the event of a failure by a travel agency or one of its suppliers.
If you experience a disability prior to your trip, you should be eligible for a refund.
If you find yourself already on a travel pickle abroad, it's easy to know that Atol will ensure your safe return – but Atol's covers are only for air travel packages purchased in the UK.
Have you paid with a credit card? Under Section 75 of the Consumer Credit Act of 1974, if you pay between £100 and £30,000 using a UK credit card, the card provider will be jointly liable for supplier disability, even if you book in the interim. If services are not provided due to bankruptcy, you can request a full refund from the card issuer.
Look for ABTA protection. If you book a land-based trip (for example, coach tours, cruises, railroads, etc.) and the company is an ABTA member, you may be entitled to make a refund or alternative arrangement under the protection scheme. ABTA does not cover flight-only bookings.
Please contact Insolvency Practitioner. If ATOL, ABTA, or Consumer Credit Law does not apply, you may contact the administrator or liquidator who will handle bankruptcy of a collapsed supplier. They may be sorting out limited refunds or arrangements.
What if you are already abroad?
Chris said: “If your end supplier fails while you are away, you will need to reach out to ATOL or ABTA if applicable. If support is gone, contact the British Consulate or Embassy.”
More help and advice can be found as follows:
