5 Things To Do If Your Holiday Operator Goes BustÂ
Many of us save year-round to have a week or two relaxing in the sun. Thankfully, the chances of your holiday operator collapsing whilst you are away, or before you travel, are very slim, but when this does happen, the cleanup afterwards can take an emotional and financial toll on you and your family.
With the recent collapse of Thomas Cook leaving up to 21,000 tourists stranded at their holiday destinations, having a vague idea of what to do should this happen to you is important. Not only will this lessen the stress, but you’re much less likely to make rash decisions, which may be costly, and let you enjoy the time you have left of your holiday.
First Steps To Take
As soon as you hear that your holiday company has collapsed, you need to speak directly to your travel company to see if your booking is still in place. If you are unable to contact them, then you should go directly to your accommodation and airline provider to see if they have your booking. If it is, then you can proceed with your holiday as normal. If not, then you will need to look through your paperwork and see if you are ATOL or ABTA protected.
Check What Happens To Your Holiday
If your holiday operator goes into collapse before you go away, then, unfortunately, it is likely that your holiday will be cancelled with immediate effect. It currently isn’t possible for you to transfer your existing booking to another company.
Your money will be protected by the ATOL or ABTA scheme, which protects the money of customers who buy complete package holidays. When you booked, you should have received an ATOL certificate, which will tell you what you should do if your travel company stops operations. Applying for a refund may take a few weeks, but there isn’t anything stopping you booking another holiday in the meantime.
If you booked your holiday components separately and the sales were covered by ATOL, then you can apply for a refund, but there may also be the possibility that you can continue with your travel arrangements as planned. Currently, the only thing not covered by the ATOL scheme is hotel-only bookings, but some travel insurance companies may cover some of your losses.
Claiming On Your Travel Insurance
Policies will differ based on a number of different clauses, so it is always best to check with your travel insurance provider if you are unsure. If you book trips on your own, then be sure that you take out a policy which has an end supplier failure which will protect you should any part of your trip collapse. These situations are the reason as to why you should always buy travel insurance as soon as you make your holiday booking. Depending on the policy you choose, you can choose cover which protects you should a company go bust.
Don’t Panic
If you are on holiday when the collapse happens, then your first instinct is to panic and think you’re not going to get home. But, there is really no need to worry. If your holiday is protected under the ATOL scheme, then you are probably able to carry on with the rest of your holiday as normal and fly home as planned. There is a small chance that you may need to switch hotels or return on a different flight, but local reps will help you and answer any questions and many tour operators have a free international number you can contact.
Verify Your Credit Card Protection
If you don’t have any travel insurance in place at the time the company goes bust, then you may still be able to claim back the money you spent through your credit card company. In order to be eligible, then you need to have paid more than £100 in total for your flights or holiday and booked directly with the company which has ceased trading. If you paid using a debit card, then you may still be able to claim some money back through the Credit Card Chargeback Scheme which the majority of high street banks are signed up to. This enables you to ask your card provider to reverse the transaction, giving you some or all of your money back.
Check Your Other Bookings
If this is a special trip, such as a wedding or honeymoon, and your plans are affected by the collapse, then you must contact the other vendors and companies as soon as possible and see if they can help in any way. If you have booked a luxury villa, caterers or a special venue, they may be able to help and rearrange the dates for you. Some companies are known for offering refunds, changes or honouring your bookings, so it is always worth having the conversation.