Holidays chaos fears as UK travel firm collapses - what you need to know

Wales Online

5 hours ago

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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."
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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.
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