Holiday Rights

Package holidays offer greater protection – and many more travellers are now fully covered

Booking a package holiday usually ensures you have the most protection if something goes wrong – where a flight's part of the package it'll be ATOL protection, otherwise from ABTA or similar. The rules on this have just changed – here's how protection works for traditional packages and DIY packages (where you buy flights/hotel/car hire from the same website, travel shop or call centre) booked since Sunday 1 July:

• Traditional package holidays – and now most DIY packages bought in the same transaction – get FULL protection. This includes financial protection (so you're entitled to a refund or to be brought home if necessary if the firm organising your package goes bust) AND legal protection (so you're covered if you don't get the holiday you paid for, eg, your hotel is overbooked or promised facilities are missing).
  
  For years, only holidays from travel agents sold in one go as a ready-made package were protected. But with the rise of online bookings, this has been gradually extended – and as of 1 July you're fully protected if you create a package by selecting elements separately via the same website (or shop or call centre) and then buy them in the SAME transaction.
• With DIY packages where you buy the elements in separate transactions but in the same website visit you get LIMITED protection. Under the new rules, this is what's technically known as a 'linked travel arrangement' – it applies if you buy the different elements separately in multiple transactions, but in the same visit to a website or shop, or in the same telephone call. (So for example, if you book and pay for a flight, then go on to book a hotel on the same site.) In this case you only get financial protection – so you're protected if the firm organising your package goes bust, but not if something else goes wrong.
• With most other holidays you're NOT protected under the new rules. So if you book another kind of DIY package, or the different elements of your holiday with different providers, you won't be covered. Crucially, ABTA (the Association of British Travel Agents) says this means a few now get LESS protection than they used to – until 1 July DIY packages booked from the same site within 24 hours gave you ATOL protection, but unless you book in the same website visit that now isn't the case.

The rules defining exactly what kind of holiday you have for protection purposes are pretty complicated and there are some fiddly exceptions to the rules above, so unless you're 100% clear where you stand, ask.

Travel firms are now required to tell you upfront if you're buying a 'package holiday' or 'linked travel arrangement' – so if in doubt, check before you buy.

Package holidays with flights get ATOL protection – those without (and cruises) have ABTA protection or similar

While all package holidays are protected, the way that protection is provided varies:

• Package holidays with flights have ATOL protection. ATOL is the name of the protection scheme run by the Civil Aviation Authority (CAA), the airline regulator. All UK firms selling holidays with air travel must be signed up to ATOL (look for the logo, see right), to protect you if a travel firm goes bust.

  If the worst happens, under ATOL you'll get a refund for your holiday or an alternative holiday/transport.

  It doesn't apply to non-UK companies though. For example, when Lowcostholidays went bust in 2016, customers did not have ATOL protection as the company was registered in Spain. You can check if individual firms have ATOL protection on the CAA website.
  
  If your package holiday includes a flight you should be provided with an ATOL certificate as soon as you have paid for your holiday.

• For cruises and package holidays without a flight, look for ABTA protection or similar. If the package you book doesn't include a flight, you'll get a different kind of protection.
  
  If the firm you book with is a member of a travel association such as ABTA (look for the logo), in a similar way to ATOL it provides financial protection if you make a booking and the travel company goes bust. ABTA isn't the only scheme of this kind – the Travel Trust Association is another – but it is the biggest.
  
  This kind of protection can ensure you get a refund or can continue your holiday as planned. For example, it helped holidaymakers in March 2017 who had booked with the now-defunct Diamond Shortbreak Holidays.
  
  ABTA will also provide assistance if you have a complaint to make against one of its members and can't reach a resolution with the firm – see how it can help.

Paying by credit card often gives extra protection (but can cost more)

If your flights, hotel or package holiday cost over £100, pay by credit card to nab extra protection if you book direct with the airline, hotel etc.

This is because when the transaction's over £100, Section 75 of the Consumer Credit Act means the card company's equally liable with the retailer/supplier if something goes wrong – see our Section 75 guide for full info.

So say the airline goes bust and you've booked directly with it, you can at least get your money back from the card company.

When Lowcostholidays went under, this is how many people got their money back, as it didn't have ATOL protection.

If you pay on credit card, always pay it off in full at the end of the month so you're not charged interest. For full info including more detail on the exceptions, see our Section 75 guide.

You've fewer rights buying via third parties such as online travel agents, eg, Expedia

You may be covered by ATOL/ABTA if it's a holiday, but for individual flight or hotel-only bookings via a travel agent or flight broker, you may not be covered by Section 75.

This is because you have no direct relationship with the supplier – ie, the airline – which is required for it to kick in; instead, your relationship is with the travel agent.

To break it down further, there are up to three layers when it comes to a flight booking – a comparison site such as Skyscanner, online flight brokers such as Expedia, and the airline. Of those, you can only book with a travel agent or the airline directly.

Obviously it's the airline that runs the flight – but online travel agents are the ones that tend to sell cheaper flights, so many choose to book with them. For more on this, see MSE Nick's blog on booking via third parties.

That said, flights and accommodation or car hire booked from the same company within 24 hours are covered by ATOL, even if not part of a formal package.

It's your responsibility to check entry requirements and Govt advice

Many non-EU countries specify visa requirements. Some countries offer them on arrival, others require them in advance – sometimes a costly and lengthy process, sometimes relatively quick and cheap as with ESTA, the US Visa Waiver Program.

Besides keeping yourself out of harm's way, it's also important to check if your destination is considered safe to ensure your holiday is covered. Many travel insurance providers will refuse to pay out for issues – including cancellations – at destinations declared unsafe to visit.

To check entry requirements, destination safety and other information, refer to the Government's foreign travel advice.

Buy travel insurance as soon as you book – don't risk £1,000s for the sake of a few quid

If you've paid but don't have insurance, and you need to cancel because you fall ill or suffer a bereavement, you won't be covered.

Insurance won't just cover you while you're away – it'll also cover you for cancellation or anything else that might go wrong BEFORE you make your trip.

With annual policies, you can choose the start date so ensure they begin as soon as possible, not the day you travel. Also ensure that cover is continuous if you switch annual cover, so the new policy starts as soon as the old one ends. Our Cheap Travel Insurance guide has full details.

Take a free EHIC if going to Europe and check yours is still valid – millions aren't

The free European Health Insurance Card (EHIC) entitles you to treatment in state-run hospitals in EU countries, plus Iceland, Norway, Liechtenstein and Switzerland. You'll be treated at the same cost as a local. If they don't pay, you don't pay. It's not a substitute for insurance though, which covers far more, such as transporting you home if you fall ill.

The card is free – don't be caught out by copycat sites that charge a fee to get one (often about £25). For full info and how to get it for free from the legitimate NHS site, read our Free EHIC guide.

Also check it's still in date – 5.4 million are due to expire in 2018.