Stress-free travel: plan now to avoid holiday scams and pitfalls
The chilly, short days of January have arrived, and many are already dreaming of sunny getaways to beat the winter blues. Despite the high cost of living, the annual holiday remains a priority for many, with travel companies predicting a 5% rise in bookings this year. If you're yet to book, here's how to ensure you get your money back if things go wrong.
Package or DIY?
While creating your own itinerary can feel adventurous, package holidays offer peace of mind. All UK companies selling holidays with flights must be signed up to the Air Travel Organisers’ Licensing (Atol) scheme. Booking a combined flight and hotel package with a UK-based firm guarantees Atol protection. However, Atol is not travel insurance, so it won't cover you if illness prevents travel. Travel expert Guy Hobbs advises, 'There's nothing wrong with creating your own itinerary, but be aware of risks.'
In the summer of 2024 and spring 2025, Booking.com reviews revealed hundreds of complaints about non-existent accommodations. Despite this, Hobbs recommends package holidays, as Atol ensures financial protection and prevents being stranded abroad if the holiday company fails.
Packages provide financial and legal coverage under the Package Travel Regulations, which means holiday operators are responsible for issues like wildfires or subpar hotels. Some may prefer DIY, but booking flights and accommodation together from the same company is a package. Adventure levels vary, from Mediterranean cruises to Sri Lanka cycling tours.
Online travel agents like Expedia or Lastminute.com offer Atol-protected breaks, but be cautious when creating itineraries and read policies carefully.
The Cost Factor
A Nationwide poll revealed that despite cost concerns, travel is a top priority for Britons in 2026. The average annual travel budget is £5,517 for longer trips and £2,348 for short trips. For cost-conscious travelers, Spain's Costa Blanca is the cheapest peak-summer European destination, averaging under £900 per person for a week in August.
Which? Travel's price check of 5,000 holidays found that Spain's Costa Brava and Costa Dorada also made the top 10, at £1,125 and £1,133 per person, respectively. Six of the 10 locations are in Spain.
Consumer organisation advice suggests waiting for January sales, as last year's data showed prices often drop after January. July was the cheapest month to book August holidays in popular destinations like France and Turkey. However, increased demand this year may impact prices and choice.
Payment Methods
Using a credit card is the best option for extra protection. While holiday firms offer 'buy now, pay later' (BNPL), it may mean losing vital financial protection. Credit card providers are jointly liable with retailers if purchases between £100 and £30,000 go wrong, as per Section 75 of the Consumer Credit Act. Debit card payments may offer refunds via the chargeback scheme, but BNPL requires self-resolution with the retailer.
If an airline goes bust and you booked directly, you can get your money back from the card company. However, Section 75 protection requires direct payment to the supplier. Online travel agents for flight-only bookings don't offer this protection.
Refundability
Most package holidays are refundable, but the amount returned depends on the departure date. For instance, Jet2holidays retains a larger percentage of the holiday cost the closer to departure, with all money lost if under two weeks away. Non-refundable flights may apply if booked separately, with Ryanair charging £45 per person for cancellations.
EasyJet allows cancellations within 24 hours of booking, but a £49 fee applies. Booking.com and Expedia offer free cancellation for hotels and apartments, appealing to those concerned about life events affecting travel plans. Cutoff times vary, typically from one to two weeks to 24 hours before check-in, with higher prices for flexibility.
Travel Insurance
The biggest mistake is delaying travel insurance until the last minute. Buying both simultaneously ensures cancellation cover, crucial if accidents or illnesses prevent travel. Guy Hobbs emphasizes the importance of purchasing insurance as soon as you book, avoiding holiday company or airline insurance, which is often overpriced and inferior.
