Proposed government reforms could give holidaymakers more protection if their tour operator collapses.

Theresa Villiers, Transport Minister, recently announced the plans to the Commons. She said: “The proportion of holidays with ATOL protection has fallen and it can be difficult for consumers and the travel industry to know which holidays are protected and which are not. The proposed reforms will make it easier for everyone to understand which holidays are covered and will restore protection to what looks like a package holiday, but now falls outside the legal definition.’’

Ms Villiers told MPs that flaws in the system were exposed by the recent big tour operator collapses, including Goldtrail and Sun4U last year, Freedom Direct in 2009 and XL in 2008.

The Air Travel Organiser’s Licensing scheme was established to offer financial protection to consumers buying package holidays, however the recent trend of buying holidays online and purchasing flights and hotels separately has meant that many holidaymakers are no longer covered by the system.

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