Yahoo Finance What happens to Thomas Cook flights and holidays? Everything customers need to know
Around 600,000 Thomas Cook holidaymakers, 150,000 of whom are British, have been left stranded after the company went into liquidation on Sunday.
Thomas Cook was unable to secure the extra £200 million needed to keep the business afloat following a weekend of crucial talks with the major shareholder and creditors.
Government officials have drafted plans for what could be “Britain’s biggest peacetime repatriation”, dubbed Operation Matterhorn, which could cost the UK up to £60m.
So what does this mean for Thomas Cook customers and do holidaymakers need to worry about the security of their bookings?
Will my holiday be affected?
The good news is that Thomas Cook package holiday customers will not be left out of pocket because these holidays are protected by the company’s Air Travel Organiser’s Licence, or Atol.
This scheme was set up in 1973 to protect holidaymakers flying overseas from being stranded if their holiday provider went bust. It guarantees customers that, should a tour operator collapse before your trip, either a refund or replacement holiday will be provided.
Atol protects bookings when flights and accommodation and/or car hire are purchased from the same operator and, according to the Civil Aviation Authority (CAA), a regulator, “some flight-only bookings – usually those where you book flights but do not receive your tickets immediately”.
What kind of compensation will I get and when?
Atol will step in to help with either a refund or a replacement holiday. Martyn James, of consumer champions Resolver, said: “If you’ve booked a packaged holiday with a flight, then Atol can help with disputes and cancellations.”
However the high number of customers affected means call centres are likely to be inundated with queries, and there may be delays arranging repatriation and refunds.
The Government has said it will launch a service to manage all refunds on September 30 and that it aims to process all claims within two months.
What if I'm already abroad? Will my return flight be cancelled?
Even if you were stuck abroad, you will get whatever help you needed to enjoy your holiday then return home. The Government has promised to ensure that all British travellers who were due to fly back within the next two weeks are brought home free of charge.
The Department for Transport (DfT) said all customers currently abroad with Thomas Cook who are booked to return to the UK over the next two weeks will be brought home as close as possible to their booked return date. However the CAA noted that repatriation flights are only available for passengers whose journey originated in Britain.
If you booked a Thomas Cook package holiday without a flight, the Association of British Travel Agents can help in a similar way.
Is my hotel booking protected?
Martin Lewis, founder of website MoneySavingExpert, said those who’ve already paid for their hotels abroad as part of a Thomas Cook package shouldn’t pay again.
But, he added, “that won’t stop a few uncertain and scared hoteliers overseas wanting money directly from British travellers to be doubly sure. This could leave British tourists in sticky situations. If so, the Civil Aviation Authority has a helpline which should sort it for you.”
Holidaymakers with accommodation booked via Thomas Cook Retail but through a third party, i.e. a booking site such as Expedia, are not financially protected. They should contact the company named on the travel documents to find out if their booking will be affected.
What if I've booked extras via Thomas Cook?
If you booked different elements of your holiday – flight, hotel, car hire, etc – independently through separate companies, one of which is Thomas Cook, you are unlikely to receive a refund. The exception is if you made all the different bookings via the same website, shop or call centre in the same transaction, in which case you'll receive Atol protection.
Can I get compensation for any hotels or extras not booked via Thomas Cook?
If your holiday plans are disrupted by the Thomas Cook collapse, meaning you have to cancel other hotels or extras such as car hire that have not been organised through Thomas Cook, you may still be able to get a refund. Contact the supplier in question directly to see if you can change your booking or be refunded. Some travel insurance policies will cover you in these situations via a special 'abandonment protection' which compensates for consequential losses.
What about bookings made via Thomas Cook Airlines?
Thomas Cook Airlines is currently up for sale, but until it is sold remains part of the tour operator. The airline arm of the operator is separate and sells both packages and flight-only trips, some of which are not Atol-protected.
The Thomas Cook Airlines terms and conditions states that “not all flights offered and sold by us will be financially protected under the Atol scheme”. The CAA says that customers can check if their purchase is Atol-protected by ensuring they are given an Atol certificate at the time of booking.
Will I be covered by my travel insurance?
Nick Trend, Telegraph Travel’s chief consumer editor, warned that, although Thomas Cook package holidays and charter flights all come with guaranteed financial protection, there is currently no automatic financial protection or refunds when a scheduled airline fails.
“A Government review has just proposed a new protection system, but in the meantime, it’s important to pay with a credit card (which gives you protection for flights costing over £100) or buy travel insurance which specifically includes cover for scheduled airline failure.”
What if I booked via credit card?
Even if you are not covered by your travel insurance, those using a credit card to pay for their holiday may still be protected. If you paid more than £100 on a credit card then the card firm should refund you. However, bookings made via an agency or some PayPal transactions may not be eligible for refunds.
Does my debit card offer any protection?
Mr Lewis advised anyone with bookings paid for using a debit card ask their bank to do a ‘chargeback’. “This isn’t a legal protection,” he said. “It is a Visa, Mastercard and Amex rule where your bank gets your money back from Thomas Cook’s bank as you didn’t receive what you paid for. It should work for most people. Those who paid by other methods such as cheques or cash have very little protection sadly.”
Can I cancel my holiday money order if I won't be travelling?
Some travel money providers will allow you to cancel your order before collection or before it has been dispatched if you opted for home delivery. In some cases you'll be charged a cancellation fee.
