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Jim Mason · Guest

CAA Highlights Summer 2007 â€˜DIYâ€™ Holiday Risks
Date: 08 January 2007

As the traditional post-Christmas holiday booking period starts, the Civil
Aviation Authority is warning consumers to check that their summer air
holidays are covered against insolvency.

The warning comes after the failure of HCCT (Holidays) Limited, trading as
CT2 and Loco Flights, which collapsed just before Christmas. The CAA
repatriated 1,000 holidaymakers from Tenerife and is now making refunds to
all customers with advance bookings.

CAA spokesman David Clover said: â€œThe failure of HCCT Holidays highlighted
to the many people who booked flights with the company the value of ATOL
protection: the organisation of repatriation flights by the CAA at no extra
cost, and the guarantee of a full refund for those unable to travel.

â€œWe estimate that over 18 million consumers will build their own holidays
this summer by buying flights separately, rather than booking their whole
holiday with a single travel organiser or tour operator. Many will book
accommodation or car hire with different companies.â€

David Clover added: â€œMany families will be planning and saving for their
annual overseas getaway, and some will be thinking about putting this
together themselves, rather than choosing to book their whole holiday with
a tour operator. But what many people wonâ€™t realise is that they will only
get the same comprehensive protection as HCCTâ€™s customers if they book with
an ATOL-protected tour operator, otherwise their money could be at risk if
just one part of their itinerary goes wrong.â€œ

If consumers want a high level of protection for their air holiday, as well
as other rights under the Package Travel Regulations, they should book with
an ATOL tour operator: if they are booking with a travel agent they should
ask whether the whole holiday is ATOL-protected and whether they will
receive a full refund or be brought home if the holiday company fails.

David Clover continued: â€œMany consumers want independent holidays away from
the traditional holiday package image. However, many ATOL tour operators
now provide flexible holidays to meet these new demands, and protect their
customers.

â€œIt is important that consumers are able to make informed decisions about
holiday protection. If consumers prefer to put something together
themselves, they should think about other protection, like insurance or
paying by credit card that will provide some cover. But be careful. Many
insurance policies do not automatically cover insolvency, so read the small
print, and debit cards do not provide the same cover as credit cards.â€

For media enquiries please contact the CAA press office on 020 7453 6030.

Notes to Editors:

ATOL is the UKâ€™s only licensing scheme for travel companies selling air
holidays and â€œdynamic packagesâ€, protecting 27 million people each year
from losing money or being stranded abroad if their travel company goes
bankrupt. Companies are also responsible for all aspects of the holiday
under the scheme, so if one element goes wrong, the company must make
alternative arrangements or provide compensation to holidaymakers.

Consumer tips on how to check for ATOL holiday protection:

- Look out for the ATOL logo on websites and in brochures if you are
booking online or by telephone;
- If you are booking with a travel agent, check out brochures and ask the
agent to confirm whether ATOL is protecting your whole holiday;
- Check the companyâ€™s details online at www.atol.org.uk or call ATOL on 020
7453 6430.

DIY package holidays are not protected under the ATOL scheme so consumers
should consider:

- Booking with a credit card. But beware - this does not always mean full
protection. You must have spent at least Â£100 on each element of the
holiday to be covered;
- There is no protection for payments made via debit cards;
- Taking out travel insurance which covers against insolvency - but check
the small print, as many policies do not include this cover.

Remember - you may only be covered for the component of your holiday that
has gone bankrupt. You may not be able to claim for any other element.

HCCT (Holidays) Limited:

HCCT (Holidays) Limited, which traded as â€˜CT2â€™ and â€˜LOCO Flightsâ€™, went
into administration on 13 December 2006. The company was based in Sale,
Cheshire, and principally operated flights to the Canary Islands. The
companyâ€™s failure left 1,000 holidaymakers abroad and many others with
cancelled forward bookings. The CAA repatriated all holidaymakers abroad at
the time of HCCTâ€™s collapse and is making refunds to all those with forward
bookings.

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