CAA names operators without ATOLs
The Civil Aviation Authority has published on its website a list of European companies that are selling holidays in the UK without ATOL protection.
It is warning consumers that if they book with any of the operators on the list they should check how they are protected.
Lowcostholidays.com, eDreams, airtickets.com, flightengine.com and travel24.com have been named so far and the CAA said the list would be updated on a regular basis.
Lowcost Holidays was criticised by the CAA when it moved its head office to Palma in Majorca last year, promoting the regulator to publish a notice on its website warning consumers that bookings with the company were no longer ATOL-protected.
A travel industry lawyer yesterday described the CAA’s public warning about Lowcost as "bold". Speaking at the Barclays Travel Forum in London, Laura Harcombe, a partner at Hamlins, said she had never seen such a response from a regulator, either in travel or any other industry.
Lowcost has always insisted that all the flight-based packages it sells are protected by the European Package Travel Directive, however the CAA is warning that not all the companies on its list have provide information about the protection they offer and that some of the protection is limited.
"In these circumstances, the consumer must go to the protection authority of the country in which the business is based for that protection," it said.
"Not all countries operate comprehensive protection schemes and in some cases financial protection will be more limited than ATOL.
"If your holiday is not ATOL protected, the CAA will not be able to assist you and you will need to deal with the protection authority of that European country."
It warns consumers that if they book with a firm based outside the European Economic Area that goes bust, they might have to find and pay for flights home, they might have to pay again for their accommodation, and there could be delays in getting refunds, which might be limited.
Like Low Cost Holidays, eDream is based in Spain, airtickets is in Greece, flightengine.com is in the Netherlands and travel24.com is in Germany.
"Some of these firms state that they provide full financial protection but some give no information on this issue," added the CAA. "In either case, we advise customers to check how they are protected before booking."
You can read its full advice here.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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