Warning issued to Brits affected by collapsed travel firm as chaos fears ramp up
UK-based travel agency Great Little Escapes, also operating as Our Holidays and Tunisia First, has abruptly ceased trading, casting uncertainty for many travellers.
British holidaymakers are faced with turmoil as bookings fall through following Great Little Escapes being stripped of its ATOL scheme membership and halting its operations.
The Berkshire-based firm touted itself as a provider of the 'best cheap breaks in the UK', focusing on city breaks, while Your Holidays boasted a varied offering, including deals for hen and stag dos, LGBT getaways and bespoke packages.
Falling into financial difficulty, the company's latest figures reveal a near £77,000 loss last year and a hefty £186,000 deficit reported for 2023, says TTG, the travel industry's news outlet.
In the UK, it's mandatory for any business selling holidays and flights to possess an ATOL (Air Travel Organisers' Licensing), providing a safety net for consumers' finances. The ATOL protection ensures that customers can either continue their planned trip or claim a full refund if a travel operator collapses, reports Wales Online.
Following the company's sudden downfall, ATOL stated they are "currently collating information from the company" and will issue guidance promptly.
Those potentially impacted have been instructed not to submit claims yet, with warnings that premature attempts will be turned down.
But now hundreds of summer breaks are in jeopardy and holidaymakers are desperate for clarity.
The authority also issued explicit guidance for associated travel agents, noting: "If you are a travel agent of Great Little Escapes LLP and you are currently holding consumer payments which you have not yet paid to Great Little Escapes LLP, you must not use these funds to refund consumers until you have received instructions from the Air Travel Trust."
The collapse of this latest travel agency is sure to unsettle those thrifty holiday-seekers keen on saving on their bookings to have more spending money for beachside cocktails and souvenirs during their getaway.
What to do if your holiday company goes bankrupt
So, what's the next step if your travel firm goes under? What rights do you have, and how can you reclaim your hard-earned cash?
Discovering that your holiday provider has folded is every traveller's worst fear, especially when you're yearning for that essential escape. Thankfully, various laws and regulations exist to aid you in getting a refund should things take a turn for the worse.
Your first port of call should be to touch base with your travel agent if you arranged your trip through them, to confirm your booking is still valid.
All providers offering services within the EU are bound by consumer protection legislation. According to the European Consumer Centres Network: "If you book a holiday, rental car, accommodation or a flight in the EU, Norway or Iceland and run into problems, rest assured that consumer rights are in place to support you.
"If your flight is cancelled, your baggage is lost, your cruise doesn't go smoothly, or you miss your train connection, EU legislation will ensure you obtain redress."
In the UK, travel companies that provide packages, including a flight, and sell them to customers must protect your money through the ATOL scheme.
As the Post Office notes, this means that if you booked your overseas holiday with an ATOL member and it goes bust before you travel, you can apply to the Civil Aviation Authority (CAA) for a full refund. If you're already on holiday when the company goes bankrupt, the CAA will arrange for you to return home.
ABTA, the Association of British Travel Agents, also provides financial protection for UK consumers who book holidays through ABTA members. This protection ensures that consumers receive refunds or assistance if their travel company goes out of business.
Package holidays and agency booking can also offer travellers extra reassurance and customer service. "Booking through a professional agent gives you the peace of mind that you are protected in the event of any changes to your travel," said Sarah Davies, a travel advisor from Life Begins with Travel. "Even if just to have someone on the end of the phone to guide you through the process."
Davies explained that many online travel companies weren't members of ABTA, though, so it was important to ensure you choose a company with both ABTA and ATOL protection "so you don't end up out of pocket and that you're well looked after."
Look for the ATOL logo when booking, and you should receive an ATOL certificate immediately after booking. You can also check a company's ATOL status on the CAA website.
If you can't reach the travel company, contact your airline and accommodation provider directly to confirm your booking and check that they've received your payment. If everything checks out, you should be all set to go on your hols.
However, if the booking doesn't exist or you can't get through to those companies, possibly because they've gone out of business, check your paperwork to determine whether you've ABTA or ATOL protection.
Making a claim
The Civil Aviation Authority notes that the refund process is quite straightforward. ATOL-protected consumers complete an ATOL Claim Form, and it then requests the documentation from the ATOL holder issued to the customer.
They will request evidence of payment to the ATOL holder or overseas supplier, depending on your claim type.
In some cases where you've paid by credit card, they may direct you to contact your card issuer for a refund. For more details, visit their website.
How to make a claim
Check your ATOL certificate or invoice to confirm that the trip was ATOL-protected and lists the ATOL holder.
Visit the CAA ATOL Claims Portal to submit your case as the Lead Passenger
You'll need to provide an ATOL certificate/reference, booking and payment details, receipts for any extra costs
The CAA then processes the claim and may seek reimbursement through a credit card provider (Section 75), in some cases.
Will Travel insurance cover me?
Travel insurance doesn't usually cover you if your holiday company goes bust — but some policies do include cover for things like 'end supplier failure' or 'scheduled airline failure.' It's definitely worth having a quick look at the fine print to see if you're protected.
Do I have Credit card protection?
If you haven't got travel insurance in place at the point when your holiday company goes bust, you may be able to claim back your money through your credit card company.
To be eligible, you need to have paid more than £100 for your holiday or flights and booked directly with the holiday company or airline.
Next steps
Do not apply for CAA claims before they publish details about a failed ATOL holder
If you're overseas, the CAA will inform you of the repatriation plan.
Upon failure, the CAA list is updated; find it on the ATOL portal .
Gather all documents: receipts, bookings, and communications; this will support your claim
At a glance:
If a travel company with an ATOL goes bust:
You'll get a refund if you haven't travelled yet.
If you're already abroad, ATOL ensures you're not stranded and helps bring you home.
It applies to package holidays and some flight-only deals sold by UK companies.
If something goes wrong:
First, go to the travel company.
If unresolved, and it's financial or related to collapse, go to ATOL via the CAA.
For complaints not involving insolvency (e.g. poor service), escalate to an ombudsman or Alternative Dispute Resolution (ADR) body.
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