Third of holidaymakers ‘don’t understand financial protection’

When booking a holiday, a third of people do not know how they are financially protected, according to research by Travel Counsellors.

The poll, among 2,000 UK residents on their opinions and knowledge of financial protection in travel, was commissioned following the recent collapse of Lowcost Travel Group.

The research found that 57% of people claim financial protection is extremely important when booking their holiday, but only 16% say that they are extremely clear on how they are covered.

Yet 31% don’t know or have never considered how they are protected if the airline collapses and 33% don’t know or have never considered how they are protected against problems if the supplier collapses.

The survey also revealed 50% of respondents believed the ABTA logo means their holiday is completely covered, whilst a further 39% were not sure. 

Furthermore, 41% of Brits are also unsure of what the ATOL (Air Travel Organiser’s Licence) scheme is or how they are protected through this.

Travel Counsellors managing director Steve Byrne said: "Clearly this raises issues of trust and protection for holidaymakers when booking their trip.