Confusion over ABTA holiday protection
By Darren Cronian on Tuesday, May 8th, 2007

There’s appears to be lot of confusion amongst holidaymakers about what protection you have if a travel company was to go out of business when you are on holiday. So today, I paid a visit to the Association of British Travel Agents website, to see if I can understand as a consumer how I am protected.

Confusion over ABTA holiday protection

Here’s my understanding.

If I book a package holiday [that’s accommodation & transport, not the actual flights] then I am protected by the ABTA bonding if a travel company goes out of business. They are two regulations which mean that the travel company has to bring ME home, if abroad when the company closes.

These regulations are the Package Travel, Package Holidays and Package Tour Regulations 1992 are overseen by the Government’s Department for Trade and Industry. If I book a flight, as part of the package holiday, then you will be covered by ATOL regulations.

It’s worth pointing out that if you were to book the accommodation and transport, with the ABTA registered travel company, and booked the flight direct with the airline, then you would not be covered under ATOL regulations.

At this point I have a question.

I always thought a package holiday was accommodation, flight, transport, i.e. Airport transfer. From reading the information on the ABTA site a package holiday in the eyes of ABTA, doesn’t include flights, so have I understood this correctly?

It became confusing when I read that if my travel arrangements aren’t automatically protected by ABTA, that I could be take out an insurance policy, i.e. the ABTA Protection Plan, so maybe someone can clarify, what type of ABTA travel agencies aren’t protected within ABTA protection remit?

Please feel free to clarify any points I may have misunderstood, as this is a minefield for consumers, but its an issue that consumers need to be made more aware of when booking a holiday with a travel agency who is an ABTA member.


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13 responses to “Confusion over ABTA holiday protection”

Lee Harrison(owner Select World Travel Malvern) | 8 May, 2007 at 5:11 pm

I Suggest Darren that you try and interview Todd Carpenter from the TTA over this, Todd has studied The Abta and Atol regulations over many many months.
If the Industry can’t decide exactly what is and what isn’t covered, then what hope for the Consumer.

Kevin May | 9 May, 2007 at 6:35 am

I would suggest interviewing ABTA itself, as it is essentially their kitemark you are most concerned about for consumers.

If you want to find out about alternatives to the consumer protection system, try the TTA (Travel Trust Association).

Todd Carpenter is indeed an extremely authoritative voice on the issue, but some might argue that he does have a vested interest.

Nicholas Lee | 9 May, 2007 at 1:29 pm

Darren

I agree with Lee, The industry can’t decide what is covered and what isn’t. So how does anyone else stand a chance?

A “package” is travel and another item, so ferry and Hotel, or flight and car hire.

The next is question about Travel Agencies. I assume you mean Travel agency and Tour operators.

What is protected with a Travel Agency, the answer is simple, every package that is not a fraud. (Travel Agencies sell a Tour Operators product). If you buy a scheduled flight only, car hire, hotel or insurance with a travel agency this has never been covered. However you can now cover it with ABTA protection plan. This is keeping it simple. With some agencies you may be covered for everything. Remember unless it is a fraud monies paid to an agency for goods is protected. The supplier has to provide you with the travel agreements paid for. The Travel agency should also tell you if you ask if your purchase is protected or not.

Tour Operators, again fairly simple but getting harder, all packages have to be covered, some tour operators also cover accommodation or flight only.

But to give you an example of getting harder, if you buy a flight only from a travel agent with thomsonfly from Thomson you are covered, but buy it on thomsonflys website and your not.

The only people benefiting are solicitors as they keep fighting each other.

Lee Harrison (owner Select World Travel) | 9 May, 2007 at 3:00 pm

Further to Nicholas Lee’s comment regarding ” Fraud”
The TTA offers a Financial Scheme that should the TTA member become insolvent, in most instances your money will still be held within the TTA members trust account by the designated trustee, and available to pay for your holiday. If the money is not there( ie. fraud), then the insurance policy is available to reimburse your loss.
So offering FULL protection to the Client even in the event of Fraud.

Darren Cronian | 9 May, 2007 at 5:25 pm

Nicholas, ahh, thanks for that, I think your explanation, whilst well written, really does confirm that it’s a minefield and no wonder consumers assume that they are protected when they book a holiday [when in some cases they obviously arent]

I’ll contact ABTA, and see if they can shed some more light on what is protected and what isn’t.

Lee, thanks for the info - whilst it’s useful to know what the TTA offer in the way of protection, I’ll be covering the TTA very soon, along with the other associations, but to keep things simple, lets stick with the ABTA discussion in this post.

Debbie | 9 May, 2007 at 10:43 pm

I’m confused

Nicholas Lee | 10 May, 2007 at 12:36 pm

Darren/Lee

In reply to Lee TTA quote, as you have already blogged the most common fraud is now to pretend to be a Travel agent. In this case no protection body will now pay out. The reason I mention it is because ABTA used to.

So ALWAYS check if a company is a member by looking on the protection bodies website or phone line.

Rohan | 10 May, 2007 at 9:53 pm

So, if I book a holiday and its a fraudster, and they say they are an ABTA member then ABTA won’t pay out?

Where do we go to find out if the company is really an ABTA member?

Darren Cronian | 11 May, 2007 at 5:00 am

Thanks Nicholas.

It appears that way Rohan, even though, I couldn’t find that mentioned on the ABTA site, so I’ll have another look later. I’m in the process of emailing ABTA, been a bit snowed under with the ‘full time job’

Darren Cronian | 11 May, 2007 at 5:01 am

Oh, and Debbie, your not the only one.

Consumers go to a travel agency, and assume [incorrectly] that they will be covered if anything goes wrong.

Kevin May | 11 May, 2007 at 5:10 am

Rohan: the ABTA website has a section where you can look up members. each kitemark on a travel agent’s website will have a member number on it - you can then double-check against the ABTA site to clarify.

Darren Cronian | 11 May, 2007 at 6:20 am

Update:

I have emailed ABTA this morning.

Will wait a response via the blog or will update if I receive any communication via email.

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