Move to see all holidays financially protected

When booking a package holiday people are protected by a company known as ATOL and their money used in a booking is safe in the event of any unforeseen circumstances. The travel association known as ABTA has now announced plans to provide the same protection for those people who book accommodation and flights directly. The new scheme would work in the same way with travel agents safeguarding the money used by holidaymakers for their flights and hotels that have been booked separately. There is currently a loop hole in the industry that means that Britons can lose their money if a hotel or airline goes under, but the new cover would close this loop hole, which will be welcomed by many.

The travel sector has suffered in the recent economic crisis and the move to see more travellers financially protected could lead to an increase in the amount of people willing to enjoy a holiday. Many budget airlines have announced an increase in passenger numbers in September on last year’s numbers and the travel sector as a whole is enjoying improved levels of business.

The new rules would mean that it would be irrelevant how the booking was made and ABTA is currently in talks with the Civil Aviation Authority and the Government about the new plans. Many travel-related websites have spoken of the move as being a welcomed prospect and they hope that it will encourage more people to travel. The final decision on whether the move will get the go ahead will come from the Department for Transport.