Compensation Schemes for Travellers

By | Category: Travel rumblings

There have been a number of high profile collapses this year amongst them XL, Zoom, Online Travel Group and Fitura. The ABTA bonding scheme means that if you book your accommodation and flight together through an ABTA bonded travel agent you are protected. If you book them separately, you aren’t.
If you pay for your flight, your accommodation, your car hire by a credit card (not debit card) then the credit card company assists.
But if you pay by debit card, bank transfer, cheque or even that disappearing commodity, cash, you are largely on your own.
When XL went bust, because of its sheer size (it provided hundred of thousands of holidays and flights each year) people cried out saying that there should be a compensation scheme for people who book their flights and accommodation separately. Since that time there has been a deafening silence. With the key booking period coming up just after Christmas, there isn’t much time to reassure next years’ holidaymakers. It could be that I haven’t heard of these moves. If that is the case then let them be made known.
On the other hand, the city solicitors, Lovells, are in discussion with 10 major insurance institutions to set up a compensation scheme for those caught up in terorist attacks.. A worthy development but terrorism attacks occur less frequently than airlines or hotels going bust.It almost seems that, at the moment, this scheme will be up and running before a ccompensation scheme for those who book their holidays in separate bits.
And what about holidaymakers who book a holiday in the UK. Are they covered if their hotel or guesthouse goes into liquidation? Or their week on a touring coach? The only protection there is, it seems to me,is that you get when you pay by credit card.


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