Travel Advice as another Tour Operator Folds
As news breaks of another tour operator, Sun4U, folding leaving 1,200 people stranded abroad, travel law specialists from Stones Solicitors LLP are keen to reassure people that there are measures in place to protect them should their holiday company go under.
Experts at the firm say that if a tour operator goes bust, one of the ways to ensure getting money back is to book using a credit card or Visa debit card. If the worst happens a claim can be made via the card company. Consumer credit law puts the responsibility on the credit card company to refund customers if the goods they bought do not turn up or if the organisation they have purchased from goes under. In order to qualify for a claim, the total cost of the goods must be more than £100 but less than £30,000.
Anyone using a Visa debit card is covered by its Chargeback scheme, which offers similar protection to that provided to those using credit cards. In order to make a claim, customers must contact their card issuer (usually their bank) which then contacts the company’s payment processing bank to reclaim the money.
Before travelling, holidaymakers are advised to make sure that they have their travel insurance policy and contact numbers for your operator with them. If they are travelling to the EU, they should take their European Health Insurance Card (EHIC) and check with their travel agent, tour operator (outbound) or local holiday representative (homebound) for any relevant information before leaving for the airport.
Alternatively, they should call the CAA overseas helpline a couple of days before they are due to come home on 00 44 203 441 0846.
Said Bronwen Courtenay-Stamp, partner and head of the travel and insurance team at Stones: “If travellers find themselves at the airport or ferry terminal and they learn that their tour operator is no more, they will find that their tickets may not be valid. It should be possible for them to claim their money back through the Civil Aviation Authority’s (CAA) travel insurance plan, although this may depend on how their package was booked. They should make their claim promptly and ensure that they send full supporting documentation – it is vital to retain copies of everything.”
She added: “If they are stranded abroad because their tour operator has gone under, the first thing they should do is speak to their local representative. The CAA will do all that it can ensure that airlines honour their ticket home via its Air Travel Organiser’s Licensing (ATOL) scheme by arranging travel on a chartered flight or an alternative if it can be found.”
If travellers are taken to an airport that is not the one they flew from, arrangements will be made to get them to the original airport. The CAA will also provide support with claims for any additional sums paid for accommodation and in situations where the individuals who own the accommodation are demanding money because they have not been paid by the tour operator. In all cases, travellers should ask for receipts and keep them – they will need them when they make a claim to the CAA.
It is also a good idea to check travel insurance policy to see what it covers. It is however unusual for travel insurance to provide cover in situations like this – the cover is provided by the CAA under the ATOL scheme mentioned earlier.
However, claims to the CAA or card companies do not cover everything. There is no compensation for loss of holiday enjoyment, inconvenience or loss of earnings. In addition, no claim can be made for the cost of booking a new trip or any insurance costs.
But a claim can be made for expenses you such as a prepaid excursion that did not take place.
Bronwen Courtenay-Stamp can be contacted at Stones Solicitors LLP on 01392 666777. More information is available by logging on at www.stones-solicitors.co.uk.