Holidaymakers still confused about financial protection

In a new survey by Thomson holidays, 96% of holidaymakers stated that financial protection was important to them – a six percent rise compared to a survey that asked the same question four months ago.

Prior to the collapse of XL, 50% of those asked thought their money was financially protected if they booked direct with a scheduled airline. Asking the same question this week, it appears the message about financial protection is starting to get through, with 76% knowing their money is not protected when they book a scheduled flight direct with the airline. However that means 24% of those asked still think that in the same scenario their money is protected. Assuming the survey reflects the views of holidaymakers nationwide, millions of people are booking travel arrangements, without knowing their money is at risk.

Having been made aware that package holidays are covered under the Government backed ATOL scheme, 80% were more likely to purchase package holidays in future, rather than make other arrangements.

Thomson Airways recently confirmed that with immediate effect, all of its flights are now ATOL protected, meaning all Thomson and First Choice package holidays and flight-only branded products are now covered.

Tim Williamson, Customer Director commented “The percentage of holidaymakers travelling under the ATOL scheme has been steadily declining for a number of years and 25 million people (more than 1/3 of the UK population) will make financially unprotected travel arrangements in 2009. The regulations are confusing, but it is important that people really do understand that if their scheduled carrier or budget airline collapses, they will lose all their money.”