Protect your money when booking a holiday

For consumers the annual holiday is an important time to relax and de-stress; many consumers save up all year long to spend a week or two with the family or friends. It is important that when you are booking your holiday, be it a package holiday or separate flight and accommodation, that you protect your money. So whether you are in small group tours Switzerland or travelling alone, always prioritize your money’s safety.

This guide will look how to protect yourself from companies going bust

It is advisable to pay with a credit card of a VISA debit card. This means should the airline, accommodation provider, or tour operator goes into administration, you should receive your money back. With the credit card you are protected under Section 75 of the Consumer Credit Act 1974. The VISA debit card works under their chargeback scheme.

Booking a holiday with an ATOL tour operator is probably the safest option. Not only should you receive your money back in full, but if you are stranded abroad you will receive assistance. Please do not assume though that because you are booking a holiday with an ATOL tour operator that you are protected and have booked a package holiday.

It is imperative that consumers ask if their holiday is protected under ATOL. Ask them what would happen if the airline or accommodation provider were to go into administration. Check the invoice to make sure that the ATOL protection is included in the holiday price breakdown.

They are travel associations that you should keep a look out for: Book via an ABTA agent or operator and they protect your money but like with ATOL you need to check. If your travel is not protected you can purchase protection at extra charge.

ABTA Travel Agents can also help in case of failure of a tour operator, which can sometimes mean you do not have to repay the money when booking with a new company.

Other travel associations to keep a look out for are the Travel Trust Association and Association of Independent Tour Operators. Any travel agents who are members of these associations offer financial protection for consumers. They are many others but these are the ones that are popular within the UK.

Some companies have created their own protection scheme for consumers who book with them. Holiday Rentals covers you up to £3,300 in their rental guarantee. You have to register but it is worth it for the additional confidence. Travel Republic says that they will refund 100% of your holiday, hotel or flight under their Total Financial Protection scheme.

It is essential that you book adequate travel insurance, but it is worth looking into the policy to see if it includes schedule airline failure insurance. This means the insurance company will pay out if the airline goes into administration.

Some policies might assist you should you be stranded abroad, but check the small print.

You should be aware that if you book a flight direct with the airline that you will not be protected financially should that airline go into administration. It is essential that you purchase schedule airline failure insurance or pay on your credit or VISA debit card.

Bear in mind that you will also have to make your own way home should you be stranded.

Make sure you are financially protected

It is essential that you check how to protect your holiday should the airline or accommodation provider, tour operator goes bust. Financial protection is not something that many consumers think about until it all goes wrong.


Alma is a travel enthusiast who loves visiting historical sites. Besides this, she loves creative writing and shares her views on the different events that are going around her.