Millions Of Holidaymakers Could Face Disaster

Millions of holidaymakers planning on cutting out the middle man by booking their holiday online this summer could be facing financial disaster when abroad.

Over the summer months, over 11 million people are estimated to bypass travel agents and book their own accommodation, flights and hire cars for their holidays.

Despite over 90% of those asked said that they considered financial protection to be important, a fifth told researchers that they incorrectly believe that their booking will be protected should they go bust, said the Civil Aviation Authority. They could be left facing the loss of their holiday, as bespoke bookings are not protected by the same consumer protection schemes that cover package holidays.

In the worst case scenario, if an airline goes bust they could find their holiday receives an unintended extension. In a recent case more than 12,000 passengers ended up stranded overseas and had to find a new route home, while 27,000 others had their holiday plans ruined.

"Our research shows that although millions of holidaymakers will build DIY breaks this summer, they don't realise they are at risk," said a spokesman for the Civil Aviation Authority (CAA).

"Holiday purchases are still a significant household purchase so we want consumers to make informed choices about financial protection.”

"We must also emphasise to those building their own holidays that they may not be protected against the risks of travel company insolvency," he added.

The CAA  highlights the benefits of booking all elements of a holiday together with a single, ATOL-protected travel company. ATOL is the UK’s only licensing scheme for travel companies selling air holiday packages, protecting around 27 million people each year from losing money or being stranded abroad if their travel company goes bankrupt. Travel companies are also responsible for all aspects of the holiday, so if one element goes wrong, the company will make alternative arrangements.

Going online can help you find the best deals for travel insurance. Make sure you read the small print and find a policy that is right for you and covers all the activities you have planned on holiday.

If you would like to know more about holiday insurance why not ask AnswerBank Insurance.