Thomas Cook goes bust – your rights for cancelled holidays and how to get a refund
THOMAS Cook has ceased trading with immediate effect after collapsing overnight – here’s what happens next for holidaymakers stranded abroad and those who have trips planned.
The world’s oldest travel firm, which had been operating for 178 years, was unable to secure a rescue deal after failing to pay the £200million bill it owed to creditors.
Its collapse means around 150,000 customers will need to find an alternative way home, while thousands more face uncertainty with upcoming trips.
Thomas Cook honeymooners stranded in Mexico are among the holidaymakers stuck abroad, as well as families and the elderly.
Britain's largest peacetime repatriation is now underway with the Department for Transport (DfT) saying stranded customers will be brought home as close to possible to their booked return date.
Thomas Cook said in a statement: "Thomas Group plc continued to engage with a range of key stakeholders over the weekend in order to secure final terms on the recapitalisation and reorganisation of the Company.
"Despite considerable efforts, those discussions have not resulted in agreement between the Company’s stakeholders and proposed new money providers.
"The Company’s board has therefore concluded that it had no choice but to take steps to enter into compulsory liquidation with immediate effect."
Read our Thomas Cook live blog for all the latest news and updates
Customers should also check the page for information on new flights back to the UK.
How do I know if my holiday is ATOL protected?
WHEN you book a holiday, the ATOL holder or their agent must give you a certificate confirming you are ATOL protected as soon as you hand over any money - including a deposit - for a holiday or flight.
Make sure you obtain and keep all the relevant paperwork in case you need to make a claim.
But be aware, the protection only covers British-based firms, so it's vital to check. When lowcostholidays went bust in 2016, customers weren't protected by ATOL because the company had moved to Spain in 2013.
Some travel companies display the ATOL logo on their websites even though they don't offer financial protection.
To check it's genuine, look for a number on the logo and check it out on the CAA's website.
You should be wary if the travel provider has no ATOL number, or if the number doesn't have four or five digits.
If you aren't sure about the website, don't book through it.
Another key term Brits should be aware of is ABTA. While ATOL protects flight-based packages, ABTA protects everything else such as cruise or self-drive trips.
If you've booked separate flights and accommodation and you're overseas
Flights and hotels booked separately are less likely to be financially protected by ATOL.
This means you'll have to buy your own replacement flight to get home and stump up the cost yourself - although you may be able to reclaim it from your insurer depending on your policy. See below for more information.
If your hotel isn't covered by ATOL
Thomas Cook accommodation that isn't ATOL-protected is covered by ABTA.
In this case, you'll need to pay any outstanding charges on your hotel room and then claim the money back through ABTA.
Just make sure you keep your receipts - you won't be able to make the claim without them.
If you cannot afford to pay what the hotel is asking, or if you're worried about the amounts being asked for, call the ABTA emergency line on 0330 135 9665.
If you've already booked a holiday using your gift card, it then falls down to the same rules as mentioned above.
Any package holiday that is ATOL-protected comes with financial protection to get your money back.
While if it isn't, you might be able to claim back through your bank or credit card issuer, as stated above - although claiming for gift card purchases is a grey area.
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