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13/05/2005: "Holiday Protection Schemes Explained"

Most holidaymakers tend to gloss over issues such as holiday protection schemes, understandably preferring to focus on the more exciting details about where they are going and when.

Such an approach, however, could prove costly - particularly if care has not been taken to ensure that a holiday is covered in the event of the operator experiencing financial difficulty.

Now a new leaflet from the Association of British Travel Agents (ABTA) attempts to clear the fog surrounding holiday protection schemes, and set out exactly what holidaymakers have to do to ensure their holiday is safe.

Holidays booked through ABTA members are protected by a bond, so if your holiday company goes bust then you will either be able to carry on as normal if already on holiday, or be given a refund or offered alternatives if your holiday has not yet begun.

To ensure you benefit from this protection, ABTA is advising holidaymakers to collect and keep all receipts for holidays and flights; always get a confirmation in writing; and ensure you have original documents - don't accept copies.

"Booking with ABTA companies gives customers confidence that their money is safe, but the holiday industry continues to change at a rapid pace and this has resulted in an increasing number of holiday products on the market that are not financially protected," said ABTA chief executive Ian Reynolds.

To help address the number of non-financially protected products, ABTA is also launching a new insurance policy that will cover travellers for holiday products not protected by existing financial protection schemes.

The ABTA Protection Plan will cover against the failure of individual holiday components, including car hire, accommodation, and flights.

These elements are currently only covered by protection schemes such as the ABTA bond if bought as part of a package.

The new policy will be available through ABTA members, who will be required to offer it to holidaymakers if they are selling products not already protected by a scheme.

Mr Reynolds added: "We have been lobbying the Government for years to plug the gaps in financial protection and we have got fed up of waiting. This policy is an excellent stop-gap and will give ABTA members a leading edge in the market."

(this article was taken from travelbite.co.uk)