What happens if your travel agent collapses?

Matt.D

My girlfriend's recently booked a adventure/conservation holiday to Ecuador and has booked through a company called Real Gap. She's previously been to Borneo using the same company and as far as I know everything went like clockwork. However, this trip isn't until next June and she's recently paid a £200 cash deposit and plans on paying off the remaining balance each month in a similar way/amount. She was advised that because the company is a member of ATOL And ABTA, should they go bust she will receive all of her money back. I'm not so sure? Can anyone shed some light on this?

Thanks!

SimbaSimon

If its a package deal then you should be fine recovering your money if something goes wrong.

However it must be a package, if its a flight and hotel booked seperately but at the same time I don't think this is covered with as much protection.

stu1169

Hi,

I would be very careful - we have just been scammed by a travel agent who was a member of ATOL (but not ABTA). He has taken all of our money and booked nothing.

See thread 1891043 WARNING! SAL Travel / thailandbeachholidays.co.uk

The best thing to do would appear to be to pay at least £100 on a credit card, because under section 75 of the consumer credit act I believe the credit card company is jointly liable, ie. if the company goes bust then the credit card company is fully liable for the whole amount you have paid, not just what you have put on the card.

One of the prepay credit cards (available without credit checks) Cashplus appears to offer protection, but whether it is fully covered under section 75 I don't know.

Regards

Stuart

Moonchild

Matt.D wrote: »

My girlfriend's recently booked a adventure/conservation holiday to Ecuador and has booked through a company called Real Gap. She's previously been to Borneo using the same company and as far as I know everything went like clockwork. However, this trip isn't until next June and she's recently paid a £200 cash deposit and plans on paying off the remaining balance each month in a similar way/amount. She was advised that because the company is a member of ATOL And ABTA, should they go bust she will receive all of her money back. I'm not so sure? Can anyone shed some light on this?

Thanks!

Matt - Real Gap are massive (and fantastic) and owned by TUI (who own Thomson Holidays) one of the worlds largest travel companies. Your money is very safe. If she booked flights through them as well, your money is covered by their ATOL. I believe they also have protection for land only packages under an insurance scheme (IPP) - see http://www.realgap.co.uk/Personal-And-Financial-Security.

Matt.D

Thanks for all responses guys, especially Moonchild, that's very reassuring. I'm still going to investigate the cover offered by using a credit card, as I think the flights are seperate to the trip :think:

Moonchild

Matt.D wrote: »

Thanks for all responses guys, especially Moonchild, that's very reassuring. I'm still going to investigate the cover offered by using a credit card, as I think the flights are seperate to the trip :think:

Hi Matt, Ask them about the cover provided by IPP for their land only packages. It looks like they charge you £6 for it (compulsory) so have a look at the cover it provides, as you'll certainly be charged a % for credit card cover.