If you are abroad when the travel company goes bust, the scheme will make sure "you can finish your holiday and return home" - similar to the holidaymakers who were affected byBrits who have yet to go on holiday will receive a full refund through ATOL within 28 working days, although this can take longer if they are dealing with large number of claims.They offer both legal and financial protection and protects you whether your holiday was mis-sold or the holiday provider goes bust.
It is also best to book a holiday on a credit card, as this offers protection for holidays over £100 under Section 75 of the Consumer Credit Act.It's also worth having travel insurance, and checking the fine print to make sure you're completely covered.How will I be able to rebook my holiday? "If that happens, they will probably ask you to fill in a form so they can claim the cost under ATOL.HOLIDAY HELLManchester Airport departures - list of cancelled flights caused by fuel issueNorwegian Air adds new Champions League flight with return fare from £589"In some cases, consumers will still be able to travel on their holidays."
This means Brits could be forced to pay out the difference or go through their travel insurance for a similar holiday option.