none more so than the stalwart of Package Holidays,

a reminder for many Britons of sunnier days past.

The collapse of Monarch however reveals an underlying concern about travel companies and their operations. 

We have seen how terror, the collapse of tourism in several destinations and the fluctuations in the UK Pound have impacted upon the operations of Travel Companies. Into this mix flows the concerns of Consumers, many trying to organise their own travel without realising the consequences of failing to investigate the companies they contract with or indeed, understand the basic protections available to them. 

For example, Consumer research would have revealed Monarch almost collapsed 12 months ago  but were saved at the 11th hour; news reports over the last 2/3 weeks would have revealed an attempt by the airline to shed various parts of its business to competitors. 

Equally, the warning ‘caveat emptor’ - ‘buyer beware’, should always be in a Consumer’s mind before purchasing a holiday, understanding what protections they enjoy. They should explore the difference between financial protection offered within a Package Holiday and a so-called DIY Holiday. Consumers will then find the UK’s ATOL scheme through which they can determine  whether they are covered for a Package or a Flight-Plus deal. 

Consumer research is important, particularly if you are an independent traveller buying separate components for your holiday. If this description fits you, then you should always add-on Scheduled Airline Failure Insurance and End Supplier Failure cover when buying Travel Insurance; do not ignore these bolt-ons!

Recent weeks have demonstrated Consumers, both in the UK and abroad, struggling to comprehend what has happened to them and how to deal with flight and holiday failure. 

To help holidaymakers, they should follow my definitive guide on how to deal with any airline failure:

1. If you have booked a Package Holiday or a Flight-Plus (this is where you book a flight and within 24hrs, you arrange accommodation or car hire), you will be covered by the Air Tour Operators Licence (ATOL) Financial Protection Scheme. When you booked your holiday, you should have received an ATOL Certificate which is your proof that you are protected;
2. If you benefit from an ATOL Certificate, then the following should happen:
1. If you have not yet left to go on your holiday, you are entitled to receive all monies paid, after you have have formally applied for your refund from the Civil Aviation Authority (CAA);
2. If you are on holiday, then you will be able to continue with your holiday as the scheme will ensure that end suppliers of your holiday are paid. If you are concerned about your return flight home, the scheme will organise your return flight and details of those flights are usually found on the CAA’s website;
3. Problems occur however if you have booked your holiday independently, buying separate components, or if you have purchased a so-called DIY Holiday (this is where you go to one site and purchase a bundled holiday which is claimed in terms and conditions to be a component holiday). In these circumstances, you should consider the following:
1. If you are truly an Independent traveller, then options are limited. In the first instance, you could try to claim for lost travel items through your Travel Insurance but unless you are specifically covered for Supplier Failure, there may be clauses that prevent such a claim. If in doubt, you should challenge their decision to not help you by using the complaints process detailed in the contract; ultimately you could escalate the complaint to the Financial Services Ombudsman if justified;
2. Another important point to bear in mind is that most Travel Insurance contracts offer Legal Expense cover; this provides you with legal help and representation to help you make claims - you should request that assistance and if they fail to help, make that complaint!
3. Another route for Independent Travellers is to make a claim through your credit or debit card. Section 75 of the Consumer Credit Act allows you to seek assistance from your credit card issuer if the value of your purchase is over £100 (note there is a maximum limit). If you paid by debit card, you could seek to achieve the same result through their Chargeback scheme. In the past I have spoken with Consumers who were refused assistance by such companies and they were encouraged to use the complaints process within their credit/debit card contracts with the opportunity to escalate the complaint;
4. In any event, all Independent travellers should register a claim with the administrators of failed companies; you will very likely not receive all you money back, but it presents an opportunity to recover some lost monies!
5. In the case of DIY Holidays, this is more problematic. In the past I have spoken with many such holidaymakers who have been engaged in a waltz between the Travel Insurer, the CAA and ABTA, all apparently avoiding any responsibility for the failed holiday and citing the purchase as not qualifying as a Package Holiday or a Flight-Plus. This is a difficult area for holidaymakers but I would strongly suggest that they gather together all the documentation, including screen-shots of the website from which you bought the holiday (this is possible through various archive sites). You should then examine that information and highlight why you believed at the time you bought a Package Holiday; the clues can be found in the use of the words ‘holiday’, ‘package’, ‘bundle’ and how it was grouped together. Once collated, they should restate their claim to the CAA. I would also recommend that you follow the points I have made about Independent travellers.

It is complex; it is a minefield, but care and research through these routes should help you get your money back!