TRAVEL: Authority's tips for keeping your holiday money safe; Holiday security

Huddersfield Daily Examiner (Huddersfield, England), Jan 5, 2008

THE Government has flagged an early warning to travellers about to start spending money on 2008 holidays: unless your money is fully protected, you could lose out if a company fails.

The ATOL scheme operated by the Civil Aviation Authority (CAA) offers full financial protection on air holiday packages bought from tour operators. If an operator goes bankrupt, the CAA refunds holidaymakers and repatriates those stranded abroad.

But this protection does not apply to all air holidays-money spent on DIY packagesmay well not be protected when an airline, hotel or car hire firm ceases to trade.

The money at risk could run into millions: CAA figures indicate that as many 18m Britons went on DIY packages last year, booking flights and accommodation separately. These are the CAA tips to keep money safe:

Check your travel firm has an AITO logo and licence number on brochures and websites. You can also check on www.atol.org.uk.

If buying online, only book when you are sure you are covered. Ask the travel firm whether you will get a full refund or be repatriated if a supplier stops trading.

If you are not ATOL-protected, see if travel insurance might fill the gap. Most policies do not cover insolvency.

Payment by credit card might give some cover, but only against the cost of the service lost. It will not cover other travel services booked separately.

You have no cover paying by debit card.

If you want to DIY your own holiday, online ATOL tour operators offer flexibility and protection, so you do not have to compromise.

Tour firms fail more frequently than many realise: latest ATOL figures show 27 tour operators failing in the year to March 2007, and 2,808 passengers repatriated from abroad. Total cost of refunds was over pounds 6m.