02 January 2009

Rise in holiday protection awareness

More than three quarters of people are more likely to buy package holidays once they know they carry passenger protection, a poll shows.

Research by Thomson found that 80% were more likely to purchase packages in future, rather than make other arrangements.

Additionally, 96% of holidaymakers stated that financial protection was important to them - a six per cent rise compared to a survey that asked the same question four months ago.

Prior to the collapse of XL Leisure Group in September, only 50% of those asked thought their money was financially protected if they booked direct with a scheduled airline, according to Thomson.

When asked the same question recently, 76% knew their money is not protected when they book a scheduled flight direct with an airline.

But that still leaves almost a quarter of people still unaware of what elements carry financial protection.

Thomson Airways confirmed before Christmas that all its flights were ATOL protected, meaning all Thomson and First Choice package holidays and flight-only branded products are now covered.

Customer director Tim Williamson said: "The percentage of holidaymakers travelling under the ATOL scheme has been steadily declining for a number of years and 25 million people (more than a third of the UK population) will make financially unprotected travel arrangements in 2009.

"The regulations are confusing, but it is important that people really do understand that if their scheduled carrier or budget airline collapses, they will lose all their money."

by Phil Davies