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What should I do if my holiday company goes bust?

It’s a shock to find out your holiday provider is no longer in business – especially if you’re on your trip when it goes bust. Here are some steps you can take if this happens to you.

It’s a shock to find out your holiday provider is no longer in business – especially if you’re on your trip when it goes bust. Here are some steps you can take if this happens to you.

Patrick Ikhena
From the Travel team
3
minute read
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Posted 20 NOVEMBER 2019

Steps to take if your holiday provider goes bust

Each summer as the warmer weather comes, on cue, another story arrives about an airline failing or a travel agent shutting up shop. If your holiday provider goes bust, it can be a stressful time. But it may be possible to salvage your hard-earned break, or at least get your money back. Your first steps will depend on whether you're yet to travel or are already on holiday.

CORONAVIRUS UPDATE

Starting on 5 November, the Government has introduced a national lockdown for England that will last until at least 2 December. As part of this, the Foreign, Commonwealth and Development Office (FCDO) advise against all non-essential domestic and international travel.

If you choose to travel overseas to a destination while the FCDO has advised against non-essential travel, or domestically against the instructions of the UK Government, then your insurance policy will be invalid, and any claim will be rejected.

For those living in the UK but outside of England, the public health rules may differ, but you must abide by the restrictions imposed by your local authority.

We’ll continually review the situation, and update you with the latest FCDO or Government guidance on travel.

For more information, please see our coronavirus and travel insurance page.

Until then, stay safe.

Customers with more serious pre-existing medical conditions

When you declare medical conditions on our website, we will only show quotes from insurance providers who will cover for all declared medical conditions, with no exclusions.

The Money and Pension Service (MaPs) has also launched a directory of insurance providers, who may be able to provide quotes over the phone if you have more serious medical conditions. Find more information at the Money Advice Service or by calling the British Insurance Brokers Association on 0370 950 1790.

You’ve not travelled and your holiday provider goes bust

Call your holiday provider’s customer services and seek immediate advice. If you don’t get an answer, check if the firm has said anything on social media, such as Twitter or Facebook. Then try to get in touch with your airline and accommodation provider. Check if your payment’s been taken and whether or not they can honour your booking. If your airline is ATOL (Air Travel Organiser’s Licence) protected, you should either get a refund or be found alternative flights.

If you’ve booked a package holiday, you should be able to claim a refund through ABTA, which is the Association of British Travel Agents. While ATOL covers flight-based holidays, ABTA tends to deal with rail, cruise and driving package holidays.

If you’ve arranged your accommodation yourself and the provider – such as the hotel – goes bust, you may be able to claim on your travel insurance. This is why it’s always good idea to buy insurance when you book your trip.

Your provider goes bust while you're on holiday

Start by checking if you have ATOL protection. Having this cover in place can stop you losing your money, or being stranded abroad, if the company you booked a package holiday with goes bust. Under UK law, every travel company that sells holidays and flights needs to hold ATOL.

If you booked a package without ATOL protection, you’ll need to get in touch with your travel insurance provider to find out if you can start a claim.

Did you book with a credit card?

If you booked your trip with a credit card – call your credit card provider, as you may be able to get a refund thanks to section 75 of the Consumer Credit Act. To make a claim, you’ll need to have paid more than £100 (and less than £30,000) for your holiday and/or flights and booked directly with the package provider or airline.

If you paid by debit card, you might be able to reverse the transaction through the Mastercard and Visa Chargeback scheme, which most high-street banks are part of.

Check if you’re covered by travel insurance

If you’ve booked independently of a holiday package provider, and have a travel insurance policy with End Supplier Failure, you may be able to claim back the cost of your holiday if, say, a hotel or airline goes into administration.

If you’re going on a package holiday, you’d typically fall within the scope of the ATOL scheme.

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