The Daily Telegraph - Saturday - Travel
Why your ski holiday is at risk – and how to protect it
The failure of Powder White is a reminder of the fragility of the sector. Nick Trend reveals ways to book with confidence
While the snow conditions have been looking pretty good recently, it has been an unsettling few days for ski holidays. Last week came the news that Powder White – which has specialised mainly in offering chalets and apartments in the French Alps and the United States for the last 20 years – has ceased trading at the busiest point in the season.
Meanwhile the 40-year old Esprit Ski – the industry’s leading family specialist – is set to close at the end of this season, and sister company, Inghams, has been put up for sale by its owners.
There is no risk to current customers of Esprit and Inghams, which has made record profits recently. But the failure of Powder White is concerning for skiers. The London-based company was founded in 2003 and, until 2020, it held an Atol licence, which meant it could offer flight-inclusive holidays. According to the CAA, which administers the Atol protection scheme, that licence lapsed during the pandemic in 2020. But Powder White was able to continue to trade as long as it didn’t offer flight-inclusive packages and concentrated on accommodation-only bookings. The risk for its customers who have booked such arrangements but are yet to travel is that they will lose both their holidays and the money they have already paid.
According to a statement posted on its website, Powder White blames its failure on “the immeasurable combined impact of Brexit and Covid, which has more recently been compounded by the cost of living crisis”. This has meant that it is not able “to fulfil its obligations and most importantly, our valued guests’ ski holidays”.
The statement does not say how many people have been affected and what, if any, refund they might receive. The concern is that the company did not seem (nor is it legally obliged) to offer financial protection for its customers. The last set of accounts it filed (in 2022) appears to show losses of more than £400,000, so advance payments made for holidays may well be in jeopardy.
Telegraph Travel has tried to contact Powder White for comment, but received no response. A website statement says: “We are in the process of urgently contacting customers with forthcoming ski holidays to lay out the options available to them.”
There is no such risk to customers of Ski Esprit, which is fully-bonded and intends to complete its programme this year. But next season will look different without one of the leading family specialists. We will have to wait to see who buys Inghams and what effect it will have on the winter sports landscape.
HOW TO MAKE SURE YOUR SKI HOLIDAY IS PROTECTED
The failure of Powder White is a reminder that booking travel independently can leave you vulnerable to financial failures. Here are three key ways to ensure you won’t lose money if your ski company goes out of business.
1. Look for Atol bonding
All tour operators which sell “package” holidays (flights and accommodation) are legally required to hold a bonded licence – known as an Atol. This scheme refunds you if you have paid but are yet to travel, and will also allow your holiday to continue and arrange for you to return as planned if your operator fails while you are away. Check for membership at caa.co.uk/atol-protection.
2. Pay with a credit card
Under the Consumer Credit Act, your card issuer must refund you any losses you suffer if the company you paid goes out of business and owes you money.
3. Buy the right insurance
Some travel insurance companies include cover for supplier failure, allowing you to claim back losses if your ski company goes out of business. Check both the excess which applies to the claim and that the policy limits will cover the cost of your holiday.