The Civil Aviation Authority is warning consumers buying ‘mystery travel deals’ that their holiday might not come with financial protection.
It said travel agents were able to sell such deals, where the destination, accommodation and even the dates of the trip are revealed at a later date, from both UK and non-UK companies without being ATOL holders.
"That means, depending on which company packaged the holiday originally, consumers booking a mystery travel deal could be left without financial protection," said the CAA in a statement.
It is urging consumers to check their travel company is an ATOL holder and that their holiday is ATOL protected prior to booking and if in doubt to book with a credit card, which will give them protection up to £30,000.
CAA head of ATOL Andy Cohen said: "Mystery travel deals are a new and exciting way to see parts of the world you may not have thought to visit. However, part of that mystery should not be whether you will be financially vulnerable.
"Without knowing which company created the package holiday, you may not be able to confirm if your holiday is ATOL protected before purchasing.
"The best way to avoid this is to ensure your travel company is ATOL protected and to take out travel insurance straight after booking to cover the rest.
The CAA said it was not concerned about any specific travel deals companies, but added that it wanted to address some areas travellers should watch out for.
