Thousands of British holidaymakers face uncertainty after popular travel firm collapses — are you affected?
The Air Travel Organiser's Licence (ATOL) provides support for consumers who have booked a package trip – such as flights and accommodation – when a tour operator goes out of business.
It arranges people already overseas to be flown home and reimburses financial losses suffered by those with future trips.
ATOL was first called on to help consumers in 1974 when Court Line, the UK's second largest tour operator at the time, collapsed, leaving around 35,000 travellers abroad.
It brought 140,000 people back to the UK after Thomas Cook went out of business in September 2019 - the UK's largest peacetime repatriation.
Other major operations include when airline Monarch went bust in October 2017 and when tour operator XL Leisure Group collapsed in September 2008.
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Wales Online
4 hours ago
- Wales Online
Holidays chaos fears as UK travel firm collapses - what you need to know
Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info UK holiday firm Great Little Escapes, identifiable under various guises such as Our Holidays, Great Little Escapes, and Tunisia First, has ceased trading, sparking chaos for many travellers. British tourists' travel plans have been thrown into disarray after Great Little Escapes was struck off the ATOL scheme and stopped trading. The company, based in Berkshire, boasted of offering the 'best cheap breaks in the UK,' with a particular focus on city escapes, whereas Your Holidays catered to a wide array of trips including hen and stag do's, LGBT getaways, and tailored packages. Stay in the loop with what's happening across Wales by subscribing to our newsletter right here. Industry news outlet TTG has revealed that the travel operator reported a loss close to £77,000 last year and had a deficit accumulating to £186,000 in 2023. British legislation mandates that all holiday companies selling trips and flights must be covered by an ATOL licence, providing financial safeguards to their clientele. This protection plan ensures that should a travel business fold, customers are entitled to complete their holiday or receive full reimbursement, reports Wales Online. In the wake of the company's collapse, ATOL (Air Travel Licensing Scheme) stated that it was "currently collating information from the company" and would provide advice as soon as possible. It advised people who might have been affected not to submit claims yet, as they would be rejected. But hundreds of summer holidays are now at risk and people are scrambling for answers. The authority also provided clear instructions for associated travel agents, stating: "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." This latest travel agent flop is bound to rattle the nerves of bargain-hunting holidaymakers who'd rather save on the booking so they can splash the cash on cocktails and souvenirs on their hols. What to do if your holiday company goes bankrupt So, what do you do if your holiday company goes bankrupt? What are your rights, and can you recover your money? Finding out your holiday company has gone bust can be a nightmare for travellers looking to jet off for a much-needed break. Luckily, there are several laws and regulations in place to help you get your money back if things go wrong. The first call should be to your travel agent, if you booked through one, to ensure your booking is still in place. (Image: Getty) All businesses that provide services in the EU must comply with consumer protection rules. The European Consumer Centres Network states: "If you book a holiday, rental car, accommodation or a flight in the EU, Norway or Iceland and encounter any issues, your consumer rights are there to protect 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." (Image: K) 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. Sign up for the North Wales Live newsletter sent twice daily to your inbox 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 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. 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. Find out what's happening near you
Daily Mirror
4 hours ago
- Daily Mirror
Warning issued to Brits affected by collapsed travel firm as chaos fears ramp up
Travel company Great Little Escapes has been removed from the ATOL scheme and ceased trading, leaving Brits with holidays booked through the firm in chaos 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.
Daily Mirror
5 hours ago
- Daily Mirror
Advice for Brits if your holiday company goes bust as another firm loses licence
It's been a turbulent year for a number of travel firms. On Monday, it was announced that Great Little Escapes, based in Sandhurst in Berkshire, has ceased as an ATOL holder. The Civil Aviation Authority predicted that 141 customers had bookings impacted as a result. Jetline Travel, a London-based company established in 2000 and parent company of Jetline Cruise, ceased trading as an ATOL holder in March. Now it has been taken into administration. While a few hundred customers were impacted by JetLine and Great Little Escapes' troubles, far bigger firms have previously folded, which has had much more significant consequences. In 2019, Thomas Cook, the world's oldest travel firm, collapsed, stranding hundreds of thousands of holidaymakers around the globe and sparking the largest peacetime repatriation effort in British history. The firm ran hotels, resorts and airlines for 19 million people a year in 16 countries. It had 600,000 people abroad when it went under, forcing governments and insurance companies to coordinate a huge rescue operation. Do you have a travel story to share? Email webtravel@ In 2010 British tour operator sun4u collapsed, leaving approximately 1,200 customers stuck abroad. If you find out a company you have booked all or part of your holiday has gone bust or is facing an uncertain future, here is what you should do. Get your phone out As soon as you hear that your airline or holiday company has gone bust, you should sit down with your phone and start making calls. If you booked with a travel agent, call them first. There's a good chance that your trip will be protected if you did book through a travel agent, or that they can help you rearrange the impacted part of your trip. If you can't contact the travel company, go directly to your airline and accommodation provider to check they have your booking and that your payment has been made. If the booking is there, you should be fine to proceed with your holiday. Check your paperwork If you can't find out if your booking is still in place, and you can't contact your travel firm because they have ceases operator, then check your paperwork. If the company you were travelling with was ABTA or ATOL-protected, then you should be okay. ABTA protection offers tavellers financial protection if a holiday company goes bust. The Association of British Travel Agents represents travel agents and tour operators that sell over £37 billion worth of holidays, so there's a good chance that yours is among them. The Air Travel Organiser's Licence (ATOL) has been protecting people booking package holidays since 1973, and by law every UK travel company that sells holidays and flights is required to hold such a licence. You can apply to the Civil Aviation Authority (CAA) for a full refund if your firm goes bust before you travel, and the CAA will arrange to get you home if you're on holiday when it does. Good travel insurance may be able to help you out and offer additional assistance on top of what ATOL and ABTA can, but make sure to read the small print. If you haven't got travel insurance in place at the point when your holiday company goes bust, your credit card company may be able to step in. If you paid more than £100 for your holiday or flights and booked directly with the holiday company or airline, and paid by credit card, you may be able to claim through the Mastercard and Visa Chargeback scheme. Card providers may reverse a transaction on your debit card, giving you your money back, if you ask them nicely.
