Thomson have increasingly been moving away from the travel agencies protection. They reduced commission out to agencies at the beginning of the year and this looks to me like another cost-cutting exercise. By withdrawing from the CAA bonding and offering no bonding themselves, they will cut the money they pay to the CAA at a stroke.

However if you book with a travel agent who has their own ATOL, you can still have protection even for low cost airlines - which includes Thomson's own Thomsonfly brand.

Protection is not gone, but you'll have to make sure you have it - it might not be automatic now!

I think ABTA have also come out of the full bonding on package tours that they used to do and are advising people to use their credit cards to book,that way you do get your money back if the company folds.

With so many people doing diy these days especially to the popular resorts the days of the package must be numbered.I gave up on them some time ago and have had higher quality holidays for a lower price since.

ABTA are the travel agent's organisation - they protect the agent's money. If the agent goes out of business, then your money is protected. Not all travel agents belong to ABTA - there are various other consortia around now who protect clients' money outside of ABTA schemes.

ATOL is the Air Tour Operator Licence - if you buy a package and it is ATOL protected - your money is protected by this. If the airline or tour operator goes out of business - this is the scheme that helps. Especially helpful if you're on holiday at the time as they will get you home.

Credit cards will get you a refund but you'll have to pay out for a flight home if the airline goes bust.