Is my holiday protected?

There are a number of schemes available to ensure that your money is safe and that you will be repatriated should your travel company go out of business. Package holidays sold to you in the European Economic Area (EEA) by ABTA Members are financially protected so that if your travel company fails, you’ll be able to continue your holiday as planned or get your money back. Package holidays that are for less than 24 hours, or are for business travel, may not be protected.

Financial protection in travel can be confusing. Remember that the easiest way to ensure you get the protection you want is to ask your travel company if, and how, your travel arrangements are protected.

The Package Travel and Linked Travel Arrangements Regulations 2018 apply to holiday travel arrangements booked on or after 1 July 2018. The new regulations cover two types of travel arrangements – package holidays and linked travel arrangements – which have different levels of protection. Other travel arrangements, for example, accommodation only, might not be protected. More details, including how the level of protection varies, can be found here.

You should check with your travel company whether your travel arrangements are protected.

What to do if your arrangements aren’t protected

Don’t rely on travel insurance: very few travel insurance policies cover company failures. They cover belongings, delays/cancellations and medical assistance but don’t usually refund you or get you home if your holiday company fails.

Do ask your travel agent for help: your ABTA travel agent can help you with supplier failure insurance for products and services that are not automatically protected.

Do check your credit card T&Cs: under the terms of the Consumer Credit Act, credit cards (but not debit or charge cards) offer you some protection if your holiday company goes out of business.

You should be able to get your money back (this applies to payments between £100 and under £30,000 under the Act) however credit card issuers will not help you get home if you are abroad when the company goes out of business.

Although there is no legal requirement for debit cards to cover you, you may be able to claim from your bank under Visa’s voluntary policy. You need to check with your bank for more information.

Also in this section