Extended ATOL will not cover half of holidays, says insolvency provider

Extended ATOL will not cover half of holidays, says insolvency provider

Half of holidays and flights taken from the UK will not be protected by ATOL despite the recently announced extension of the scheme, according to a travel insurance specialist. International Passenger Protection (IPP), a member of the Association of British Insurers (ABI), has warned that many DIY travellers will remain uncovered by insurance, particularly if a scheduled airline collapses. This suggests that travel agents could again benefit by offering customers the protection and assistance seen during last year’s ash cloud crisis. “Even after the proposed ATOL extension, we predict that over half of trips from the UK will not be protected under the scheme,” explained Michael Ward, director at IPP. “Direct airline sales, non-air travel and the increasing popularity of review websites such as Trip Advisor, which encourages independent do-it-yourself style holidays, all fall outside of the ATOL even after the proposed reform.”

Gary Marshall
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