The new holiday booking rules that will protect 10 million more travellers a year
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Holidaymakers who book trips online are to get new protections to ensure they aren't left out of pocket if their travel provider goes bust.
On Monday, a series of new Package Travel Regulations are being proposed in Parliament to further protect consumers who book 'package' breaks online - but in separate parts.
The rules - which are set to come into force next July - would mean all travellers who book on the internet would get the same financial security as those who book an all-in break on the high street.
The Government estimates that this would cover an extra 10 million travellers a year - many of whom aren't currently covered by travel protection scheme ATOL.
The proposals come just months after an ABTA Holiday Habits report found more than three quarters of UK consumers now book their holidays online and in segments rather than one complete package.
'Peace of mind'
The government says the new rules will mean passengers who book flights, hotels or car hires outside of package holidays, will also be covered by its protection scheme, ATOL.
This is the Air Travel Organisers’ Licence - a consumer protection body set up in 1973, for all package holidays that include a flight.
It ensures that you don’t lose the money you paid out or become stranded abroad if your travel company collapses.
Under ATOL, all companies selling package holidays which include an airline ticket must pay into a pot that can refund people who lose their holidays or, if needs be, bring them home if they are abroad when a company folds.
The rules would mean that an extra 22% of holidaymakers would get their money back if something goes wrong.
This includes where third party firms are involved for ‘extras’ such as car hires and transfers.
Launching a six-week consultation on the proposals, consumer minister Margot James said: "While consumer laws protect millions of holidaymakers from the fallout if a travel company goes into administration, the way we book holidays has changed significantly in recent years and it is important that regulations are updated to reflect this."
Alex Neill, of Which? added: "Holidaymakers should be able to book their trips without worrying about whether they will be protected if their travel agent, airline, or hotel goes bust.
"The Government must make sure gaps in protection are addressed so that consumers have peace of mind however they book their package holiday."