Share

good advice for getting away

The recent collapse of Globespan which left thousands of customers stranded overseas and tens of thousands losing flights and holidays they had paid for, highlighted not just the fragility of the travel industry but the complexity of safeguarding any bookings made.

In an effort to help Chamber members ensure any flight or holiday bookings they make are safeguarded Business Bulletin asked advice from Barrhead Travel, one of the UK’s largest independent travel agents and ATOL, a financial protection scheme managed by the Civil Aviation Authority.

Sharon Munro, chief executive of Barrhead Travel, said it was little wonder, given recent events, that people were nervous about committing a large portion of their annual income to a holiday due to take place several months down the line.

“In the last 18 months alone more than 60 travel providers have collapsed, including well-known names such as XL, Zoom, Seguro and Globespan, leaving many holidaymakers stranded abroad, out of pocket, or without the means to rebook a holiday with another company,” she said.

“The protection afforded to customers in the world of travel can be confusing for the uninitiated.

“Barrhead Travel has simplified the situation to ensure its customers are fully protected against the potential pitfalls.”

She said that as the company is an ATOL (Air Travel Organisers' Licence) holder, should a tour operator go bust its clients would receive refunds and those already on holiday would be able to complete their break and then fly home.

She stressed the importance of not parting with any money until it has been clearly established that the travel agent holds this licence which can be checked on the ATOL website www.atol.org.uk/.

She added: “Consideration of the possible financial implications is especially important when booking travel on the internet with a company which does not provide access to an office or customer service phone line.

“Getting redress from such a company in the event of a complaint or financial failure can be difficult, as many sell the holiday components separately, so avoiding being held to account under the package holiday regulations.”

Barrhead Travel is a member of ABTA (The Association of British Travel Agents), which has a code of conduct governing the relationship between members and their customers and if an ABTA member ceases to trade, your holiday will generally still be safe.

Ms Munro said that Barrhead also took out an additional non–compulsory insurance on behalf of clients which meant their money was guaranteed to be refunded in virtually all circumstances.

She suggested taking out travel insurance to provide cover should the journey have to be cancelled and cautioned that the cheapest was not always the best.

Finally paying by credit card was a further safeguard if the cost was between £100 and under £30,000, because the customer was protected by the Consumer Credit Act of 1974.

A spokesman for ATOL said that for business travellers paying by credit card or taking travel insurance with Scheduled Airline Failure cover was particularly important because there was no ATOL protection if only booking a flight.

“Some Visa debit cards also offer protection, but this is not a legal right,” he said.

“Look out for the ATOL logo on websites and in brochures if you are booking online or by telephone.

“If you are booking with a travel agent, ask the agent to confirm whether ATOL is protecting your entire holiday

“Many holidaymakers now plan so-called ‘DIY holidays’ where they bring together holiday flights and accommodation from different suppliers, such airlines and hotel bed-banks. However these holidays are not protected in the way a holiday package bought from a single holiday company would be under the ATOL Scheme.

“Booking on-line with separate suppliers may seem like a cheap option, but if for example an airline were to stop flying, you would have to make your own arrangements to get home and you could pay considerably more. You may also have to curtail or increase your stay in order to get available flights.

“Should an airline fail and you've yet to travel on your holiday you may have difficulties getting to the accommodation you booked separately.

“If you can’t reach your destination you may lose the money you paid and if there are last minute alternatives flights, these may not operate on the same day and are likely to be more expensive.

“Our advice is to take out travel insurance making sure it covers airline insolvency and any possible indirect loss as a consequence. Be careful though, because many policies don’t give this cover, while those that do limit the amount you can claim or have exclusions, so read the small print.”