Travel Ins for 3rd party failure

lisyloo

I'm planning a diving holiday next year (8 months time) with a Philipino company. I have done all the due diligence I can i.e. checked with professional organsation (PADI) that they hold the 5* rating they claim etc. Checked reviews etc.

I have seen some insurers cover for 3rd party failure, but generally this is insolvency only and generally for trains, ferries and certain listed services (not diving operators).

Our options are:

1) Pay by bank transfer with no protection at all
2) Paypal - 5% charge plus currency exchange - 45 days protection
3) Credit card - 5% charge plus 12% VAT under Philipino accounting rules
4) Go with UK holiday company (£2500 each vs £1000 each)
5) Don't go

Is there any insurance I can get for their failure to show up?
Are there any options I've missed?

I am not overly concerned and think their failure is unlikely. If I was overly concerned I wouldn't be considering it, but I'm just wondering if there is any option that I'm missing.

Currently we're considering 50% deposit via bank tranfer with Transferwise.

InsideInsurance

I'd be surprised if sales tax was only applicable if paid directly and not via paypal etc (cash in hand may be the exception)

Credit card payment direct to them would give S75 protection assuming the per person price is over £100 (i assume the £1k is the full holiday not just the dive element)

Insurance doesnt typically cover no shows, overbookings etc as you can recover the loss directly from the merchant

Quentin

1. See if you can just pay a small deposit now and balance when you get there.

2.Don't prepay at all and sort it on arrival.

lisyloo

No, it's only for credit cards not paypal.

Due to Phillippine accounting rules, if you pay for rooms and transfers on a credit card, you will also be charged and additional 12% VAT. This is not charged if you pay any other way. VAT is already included for the diving portion of the package.

Yes I'm aware of section 75, but an extra 11% (splitting the diving and hotels/transfers 50/50) seems a high price to pay for protection. That's £220 on £2K.

Insurance doesnt typically cover no shows, overbookings etc as you can recover the loss directly from the merchant

Thanks for the advice, but I expect it'd be extremely difficult (next to impossible) to recover from a company in the Phillipnes direct even if you had legal insurance and even more difficult if they decided to dissapear with the money.
Obviously I don't think those scenarios are likely (otherwise I wouldn't even be considering it) - I'm just being clear on the risks.

lisyloo

1. See if you can just pay a small deposit now and balance when you get there.

Their terms are 50% now and 50% 45 calendar days before.

Paying there is tricky (even if they agreed) because the CC fees and VAT still apply, there are few ATMs on the diving islands, small daily limits on those ATMs and small limits (officially) on how much cash you can take to the Phillipines (250 USD).

2.Don't prepay at all and sort it on arrival.

Not a chance.
They won't hold a place unless you put down a deposit.

Quentin

Sorry.


You asked for suggestions for options you are missing and I tried!!

lisyloo wrote: »

.... I'm just wondering if there is any option that I'm missing....

(Will there be no place if you leave it till you arrived?)

lisyloo

You asked for suggestions for options you are missing and I tried!!

Thanks, I appreciate any suggestions.

(Will there be no place if you leave it till you arrived?)

Almost certainly.
The spaces are strictly limited (by the size of the boats).
It would be a huge risk to pay thousands for air travel and just hope there are 2 spare places.
Most operators offer discounts rather than go with empty places.

lisyloo

We are going to go for the trip.
The comapny concerned has awards coming out of their ears and whilst nothing in life is guaranteed, I don't think we can do better apart from paying large fees that aren't justified by the risk.

I am a little dissapointed but not suprised that so often insurance fails to cover the things you want it to cover.
It's not an unusual situation to book elements of travel with foreign companies and suing companies abroad is generally not an option.

forgotmyname

I would just turn up and take any available time slot they have going, Checked others operating in the same area?

Unless its money that you can afford to lose i would book when there.

lisyloo

I would just turn up and take any available time slot they have going

It's a risk to take valuable time off and spend a lot of money getting there and hope there are spaces especially on the itinerary/activities we want.

I have however come up with a solution and a little suprised no-one has mentioned it and I Forgot about it too !!
I can pay £1 on my credit card to cover the whole lot - whoopee !!

I will have to ask the company, but I find most people on the receiving end of a 4 figure sum to be co-operative.