Doublecheck travel insurance after package holidays are redefined

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Mon, 20 Feb 2006

Travellers are being advised to doublecheck their current Travel Insurance policies after the industry has redefined the definition of package holidays.

The Association of British Travel Agents has successfully overturned guidance that suggested they were required to join a consumer protection scheme because they were offering package deals when selling customers flights and hotel accommodation.

A ruling from the High Court has now decided a package holiday is only sold when a combination of transport, accommodation or other services is available at an "inclusive price" and is not available to buy individually.

This could mean that many holidaymakers could be wrongly relying on the protection of the Air Travel Organisers Licensing scheme (ATOL) and people are being urged to take out their own Travel Insurance to protect against any potential problems.

"The continuing growth in leisure air bookings, principally direct with airlines, highlights the fact that a smaller proportion of travellers are now ATOL-protected," said Richard Jackson, director of the consumer protection group.

He added: "Consumers should be alive to the potential risks so they can make an informed choice and consider whether to take their own financial protection measures, such as Travel Insurance that covers against insolvency."


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