ATOL COSTS
Travel vouchers for Brits with cancelled holidays will be protected even if firms go bust
VOUCHERS given to Brits whose package holidays were axed in lockdown will be protected, even if their travel firm goes bust, ministers say.
Transport Secretary Grant Shapps said the ATOL protection scheme would be extended to cover the credit notes.
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He said: “We want to send a clear message to passengers that they can book their summer holidays with confidence.
“This is not only good news for anyone looking to get away for a break in the sun, but also for the aviation and travel sector which has been hit hard by the pandemic.”
The ATOL fund is run by the Civil Aviation Authority and requires travel operators to pay a fee of £2.50 to protect each passenger booking in case they go bust.
The fee is used to refund, repatriate or reimburse travellers for the cost of repaying for the affected parts of their trip.
Travellers will still be entitled to a refund and will be able to receive one if they request it - but the government’s action ensures an extra layer of protection for consumers.
Martin Lewis, founder of MoneySavingExpert.com, said: ”This is a key travel intervention we've been calling for.
"It's far from a cure-all, but ATOL is a statutory scheme and the fact the Government will now effectively underwrite its credit refund notes gives a solid bedrock of security for customers willing to take them.
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"And I'd encourage those who it's right for to do so. The pandemic has been devastating for the travel industry and travellers.
"Taking an ATOL credit refund note if you're likely to rebook shows welcome forbearance and flexibility, and the fact that, if you don't use it, it can be exchanged for cash gives peace of mind.
"Of course it's not right for everyone, many desperately need a refund. My hope is this more solid halfway house for some will enable firms to more swiftly pay out full refunds for others."
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