DIY holidays at risk in the face of provider insolvency

Date: 14/05/2007 15:00

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Consumers who put together their own holidays may not be protected should their travel companies become insolvent, the Civil Aviation Authority (CAA) has warned.

Some 18 million people create their own holidays, booking airline, hotel and care hire deals.

However, while 92 per cent of the consumers surveyed in the CAA survey believed that financial protection was important, more than a third believed that their DIY holidays would automatically be financially protected if the airline, care hire company or hotel stopped trading.

Holidaymakers are being warned to make sure that they are indeed financially protected in such an event.

Because the various components of the DIY holiday are separate, consumers could be liable to buy new flights or book different accommodation if the transport or accommodation provider ceases trading before the holiday.

The CAA is urging holidaymakers to book their holidays through ATOL-protected travel providers.

"Our research shows that although millions of holidaymakers will build DIY breaks this summer, they don't always realise they are at risk," said David Clover, ATOL spokesman.

"Holiday purchases are still a significant household purchase so we want consumers to make informed choices about financial protection.

"Those building their own holidays using different supplies should be aware that they will not be protected against the risks of insolvency in the same way as booking all elements with one travel company."

Good travel insurance can help give you some peace of mind while on your break. Call InsureandGo today and find out what unforeseen events you can be covered for.

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