I think it is a bit complicated.

If you pay by creditcard you may be able to claim back from them if the company goes bust. But I am sure that only applies if you book with a British company, so for example if you book direct with a hotel abroad or a foreign booking agency you wouldn't be covered.

You wouldn't be covered by the Package tour regulations, so for example if you were abroad whilst a failure took place you may have to make your own way home paying upfront and then claiming back on your travel insurance.

If you book your accommodation via an agency who goes bust like Freedom direct did and ScotTravel ahve this week, it seems you have to pay again for your accommodation.

Then when you get back try and get a refund from your card, as often the agencys have not paid the money on to the hotel even though you have paid them, so the hotel will no honour the booking unless you pay again.

There are a few threads on here about what ATOL do, it might be worth either reading them or hopefully someone who fully understands ATOL will reply. These are the people who I beleive cover your flight. Dont think ABTA would apply as they are the Association of British Travel agents and you would not be using a travel agent.

I think the number one problem is what happens if the airline goes bust and leaves you with a hotel you can't use. Any credit card or CAA bonding will only cover you for the lost flight. Even if you have supplier failure cover in your insurance you could have probelms getting any "consequential" losses. The same would be true if you bought a whole package holiday from a tour operator plus some tickets to a theme park from the park. If the tour op went bust you'd eventually get the money back from them but you could be in trouble over any unusable extras bought elsewhere.

There is a fairly easy way round the flight + hotel problem. Book a hotel that doesn't want money up front and allows late cancellation. May not be possible at some locations but by booking direct with the hotel or by using an agency like HRS who don't handle money you can do it.

I bought supplier failure cover, BUT hope I do not need to use it £8 won't break the bank! CBG

hi what is supplier failure cover and where did u get it:duh

Supplier Failure Cover is what most people think ordinary insurance is but normally are wrong! If you look at policies they are normally called TRAVEL insurance not HOLIDAY and the reason for that is the one thing that isn't normally covered is the holiday you paid for. It's you (injury, illness, geting sued), the travelling (delays, missed flights) and usually your property that are covered but if the airline or accomodation supplier goes bust you are stuck. If you buy a package off a tour operator this would be THEIR supplier so it's their problem, if a UK tour operator goes bust then there should be ABTA or CAA money to refund you (eventually....). But if you put the holiday together and someone you've paid goes bust it's your problem. A few travel policies include SFC (Marks & Spencer did last year, I haven't checked this year but they say it's got better) but you can also buy it seperately. If you have a policy and it doesn't cover you, go to Google and search on the phrase for companies who will sell it.

This is why I say try to book hotels that don't want money in advance, that way only your flight would be a risk and if it's a low cost one you wouldn't be gambling much. I've got 10 days in the Alps all sorted and booked for September but I've only paid £100 in advance and as long as TUIfly don't go bust later than 24 hours before I'm due at the first hotel that's the most I'm risking!

I found a wesbite from a Telegraph news article that sells supplier failure cover with no policy excess,
protectmyholiday.com

John

jhinton ... you have mentioned that company in most of your posts. I assume that you also found employment with them via that Telegraph article (or was it the Observer article mentioned in another post ?), as you have posted from an IP address directly associated with the company.

Members should take note, just in case you may read any other recommendations which you might believe to be genuine and unbiased.

David