Paphos - Cyprus

Is your Holiday Safe? ABTA, the Law, and Insurance

You book with an organisation with an Abta logo and your money is safe - right?

Wrong! It was true once, but no longer.

ABTA no longer guarantees customer money is safe. This article from the Independent, headed Holidaymakers lose refund certainty as Abta dumps guaranteed safety net sums up the changes http://www.independent.co.uk/money/spend-save/holidaymakers-lose-refund-certainty-as-abta-dumps-guaranteed-safety-net-414266.html

This is a fact of which the consumer is largely unaware, yet many veterans of the tourist industry are very worried about, as there is an implicit false promise. You can read more here from a travel industry newspaper if you are minded to:

http://www.travelweekly.co.uk/Articles/2009/07/17/31475/abta-vs-the-bed-banks-an-open-letter-from-steve-endacott.html

On their web site even ABTA say paying by credit card is the best protection:

What Happens if Your Travel Agent Ceases to Trade?

If you’ve made your booking through a travel agent, it’s important that you obtain and keep all the paperwork referred to above. This will show that you have a booking with the relevant holiday company.

You should contact the holiday company to make sure that the booking is in place. If it is, then your travel arrangements should continue unaffected.

In the unlikely event that your travel agent has failed to make your booking with a travel company you should contact your credit card company if you paid by credit card. If you didn’t pay by credit card, contact our claims enquiries office for advice and assistance. Contact: ABTA Claims, PO Box 127, Metro House, Northgate, Chichester PO18 8WQ, Tel: 01243 621 500.

ABTA may not be able to recover your money for you but we can assist in taking the matter up with the relevant authorities.

What about ATOL licenses? ATOL (Air Tour Operator’s License) is specific to those companies who sell packages of accommodation and flights combined.  So if, like an ever-increasing number of people, you want to pick and match your own combination of flights, accommodation and maybe car hire, ATOL is simply not relevant

None of this is very reassuring to someone looking to book a holiday and feel confident that their money is safe.  If the company fails to deliver, your credit card company is jointly liable, and has to refund you.

The truth is consumer protection in travel has never been more of a dog's breakfast than it is today. Scheduled flights have never been protected. An ABTA agent who has passed yourmoney to an ABTA operator, and neither of them has traded dishonestly is protected - but how can you tell?

Paying by credit card and having a good travel insurance policy, not some pretend one they give away with an over-priced bank account, are the key ingredients in protecting yourself.