The last resort: With travel operators running into trouble, heres how to protect your holiday

When youve spent hundreds or even thousands of pounds to escape to somewhere sunny for the summer holidays, you may have to stifle a scream when you find out that your travel operator has gone bust days before you were set to fly.

This scenario will sound all too familiar to many families, after news emerged last Friday that two package holiday companies, Super Break and Late Room, ceased trading.

Its thought that more than 50,000 travellers are affected by the collapse of the firms parent company, Malvern Group.

Malvern is just the latest addition to the list of holiday companies which have run into trouble lately – take, for example, London-based The Holiday Place, which went into administration in May, taking its 16 travel brands down with it.

Even the UKs largest travel operator Thomas Cook isnt immune, having reported a £1.5bn half-year loss in May, which it blamed on consumers putting off their holiday plans due to Brexit.

And just to add fuel to the fire, its not been an easy ride for the airlines either, with five European companies going bust since October last year, not to mention major flight disruptions caused by drones at Gatwick airport or the now-suspended strikes at Heathrow.

Many holidaymakers are probably holding their breath, wondering if theyre going to have to ditch their overseas holiday plans and head to the slightly less exotic region of Bognor Regis instead.

Its certainly worth knowing your rights, and seeing if there are steps you can take to protect yourself financially if disaster strikes before or during your holiday.

The whole package

If youve been sold a package holiday by a member of either the Association of British Travel Agents (ABTA) or a provider that is protected by the Civil Aviation Authoritys Atol scheme, the good news is that you wont lose money, as both schemes will refund you if the company collapses before youve set off.

And if youre already on holiday, fortunately both Atol and ABTA schemes will make sure that you can continue the rest of your trip as planned, and wont leave you stranded abroad.

Where the airline is not at fault, such as for weather-related reasons or due to a drone incident, it wont be obliged to pay passengers extra in the way of flight delay compensation

Heartbreak hotel

Its not such great news for those who booked a hotel-only deal rather than a package holiday, because these consumers arent afforded the same protections.

For example, Malvern warned that hotel bookings through the Late Rooms website may be cancelled, while customers who are already on a break might be asked to pay again.

In instances like these, youre advised to contact your credit card provider, which should be able to offer you some protection if your holiday company goes out of business.

Indeed, for payments between £100 and £30,000, the Consumer Credit Act allows you to get some of your money back. But be warned that credit card issuers will not help you get home if you are abroad when the company goes under.

Although there is no legal requirement for debit cards to cover you, ABTA points out that travellers may be able to claim some money from their banks under Visas voluntary policy, so youre advised to check with your card provider.

Turbulent ride

In the event of a corporate failure of an airline, you should first find out if you can get money back through your travel insurer.

While some insurance policies cover you for airline failure, beware that many dont, so make sure you read the terms and conditions. And if your insurer doesnt cover this, again you should be able to get some kind of recourse through your credit card provider.

While not as severe a situation as a company closure, flight delays and cancellations can also be hugely stressful for travellers.

Bear in mind that if your flight departed from an airport in the European Union, the airline must adhere to EU law. This means that if your flight has been delayed or cancelled, the airline must either offer a full refund (including for the return journey), or a replacement flight.

For longer delays of at least two hours, the airline is obliged to provide food and drink vouchers, and for overnight delays, it should provide hotel accommodation.

However, where the airline is not at fault, such as for weather-related reasons or due to a drone incident, it wont be obliged to pay passengers extra in the way of flight delay compensation.

The Civil Aviation Authority explains that while an airline might put you onto the next flight hours after the one you booked, it wont offer you extra redress for the delay incurred from the replacement flight.

Take, for example, the threat of Read More – Source

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