Holidaymakers who book online to get more help if firms go broke

HOLIDAYMAKERS who buy their flight and hotel separately online will be given new safeguards to help to get their money back if the company goes bust, the Government will announce today. At present, only people who buy a package deal get protection that promises to bring them home and refund them if the provider goes out of business. But in a bid to keep up with the growth of holiday bookings online, the new protections are set to be rolled out to the thousands of people who book online from next year.

Theresa May, the Prime Minister, said: “This Government is committed to making our country fairer by ensuring consumers have the protections they deserve both online and offline. Technology has transformed the way people book holidays, and this Bill will mean the Atol scheme can keep pace both now and in the future.

“Whether you book a well-earned getaway on the internet or the high street should not make a difference to knowing you won’t be stranded or left out of pocket if something goes wrong.”

New legislation would ensure the Atol protection scheme extends to passengers who books flights, hotels or car hire not sold as part of a package holiday, covering a gap in the internet travel market and matching standards expected on the high street.

The measures form part of the first Bill to be debated in the Commons since the Queen’s Speech.

From 2018, when holidaymakers book a flight and are then directed by the airline to a separate company to book accommodation within 24 hours, the holiday will be covered by a government protection scheme.

The Abta Holiday Habits Report last year found more than three quarters of UK consumers now book their holidays online.

John Hayes, the transport minister, said: “This change will make the law fit for the modern age.”