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Jersey Consumer Council

Consumer News

Financial Protection for your Holiday

November 18, 2015 Travel and Transport No Comments

Financial Protection for your Holiday


ATOL (the Air Travel Organisers Licence) is a financial protection scheme for air passengers. If you book an ATOL protected holiday or charter flight and your tour operator, airline or accommodation provider goes out of business before you travel you can claim a full refund.

If a service provider goes out of business while you are abroad, you will be able to continue your holiday and arrangements will be made for you to fly home once the holiday is over.

ATOL Certificate

Before booking you should check with the travel agent or tour operator whether your flight or holiday package is ATOL protected.

Jersey residents must be aware that ATOL only protects packages or flights, which originate in the UK ñ always check with your tour company/travel agent regarding ATOL protection and eligibility.

Don’t leave home without your ATOL Certificate

Keep your ATOL certificate safe and make sure you bring it with you when you go on holiday.

Association of British Travel Agents (ABTA) Protection

Many Jersey residents will enjoy the FlyDirect options (and ferry packages) now available from Jersey ñ it should be noted that these are not eligible for ATOL protection (as described above).

However such packages and flights would be financially protected as long as the company with whom you make your travel contract in

Jersey is bonded with ABTA (and they are current members).

ABTA includes protection both in the event of failure of the tour operator prior to departure, in which case deposit/balances paid would be refunded, and for repatriation in the event of tour operator failure whilst clients are abroad. In other words protection is afforded in the same way as by the Civil Aviation Authority (CAA) and this applies to both flight-only and package holiday sales.

Financial protection if you are not covered by ATOL

  • If your flight is not ATOL protected, you should ensure your travel insurance policy provides cover in the event that the airline goes out of business.
  • If you buy a ticket using a credit card and the airline goes out of business, you may be able to claim a refund from your credit card company under the Consumer Credit Act. The cost of a single (i.e. one leg) ticket must be at least £100.
  • Consumer Credit Act, Section 75, this vital law adopted in the 1970s and it turns any credit card into a financial law was adopted. If you make a purchase of over £100, your credit card company must shoulder the responsibility if a problem were to arise with a purchase.
  • Whilst this Act does not apply to Jersey, it is likely that it will appear in the terms and conditions that you signed upon opening your account.
  • If you buy flights using a debit or prepaid card (such as a Visa, MasterCard or American Express card), you may have the benefit of a chargeback scheme to claim back your money if the airline goes out of business. Usually, you must make a chargeback claim within 120 days.

Please check out our Plane Facts guide on line or telephone us on 611161 and we can post you a copy.


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