CAA issues 2007 ‘DIY’ holiday risk warning

Consumers are being warned to check that their air holidays are covered against insolvency during the new year peak booking period for the summer.

The Civil Aviation Authority estimates that more than 18 million people will organise their own ‘DIY’ holidays using different travel components this summer.

The CAA alert came after the failure of HCCT (Holidays) Limited, trading as CT2 and Loco Flights, which collapsed before Christmas. The CAA repatriated 1,000 holidaymakers from Tenerife and is making refunds to all customers with advance bookings.

CAA spokesman David Clover said: “The failure of HCCT Holidays highlighted to the many people who booked flights with the company the value of ATOL protection: the organisation of repatriation flights by the CAA at no extra cost, and the guarantee of a full refund for those unable to travel.

“We estimate that over 18 million consumers will build their own holidays this summer by buying flights separately, rather than booking their whole holiday with a single travel organiser or tour operator. Many will book accommodation or car hire with different companies.”

Clover added: “Many families will be planning and saving for their annual overseas getaway, and some will be thinking about putting this together themselves, rather than choosing to book their whole holiday with a tour operator.

“But what many people won’t realise is that they will only get the same comprehensive protection as HCCT’s customers if they book with an ATOL-protected tour operator, otherwise their money could be at risk if just one part of their itinerary goes wrong.

“Many consumers want independent holidays away from the traditional holiday package image. However, many ATOL tour operators now provide flexible holidays to meet these new demands, and protect their customers.

“It is important that consumers are able to make informed decisions about holiday protection. If consumers prefer to put something together themselves, they should think about other protection, like insurance or paying by credit card that will provide some cover. 

“But be careful. Many insurance policies do not automatically cover insolvency, so read the small print, and debit cards do not provide the same cover as credit cards.”

Report by Phil Davies