News: Thomas Cook in trouble – what does it mean for your holiday?
Thomas Cook shares have recently taken a tumble. With closing branches and big losses reported, many holiday-goers are looking for answers.
Holiday firm Thomas Cook are reported to have made huge losses this year. We take a look at how this could affect you.
What’s this story about?
Two months ago, Thomas Cook announced that they were looking into selling the airline over concerns about the company’s future. The profits made from the airline would then be put back into Thomas Cook high street stores and hotels, which are currently struggling.
Share prices in the company have fallen since this announcement – and they’re now worth less than half of what they were a week ago and only tenth of what they were worth last year.
How does this affect you?
If you’ve booked a package holiday, you’ll be covered by Atol protection. This means you’re legally guaranteed a refund should anything go wrong. However, if you’ve booked flights and accommodation separately, you won’t have this protection.
If you booked the flights or accommodation with your credit card (and you spent over £100), you’ll be protected by Section 75 of the Consumer Credit Act. This means your credit card company will cover the cost should anything go wrong – you just need to contact them to make a ‘Section 75’ claim.
Booked with your debit card instead? While you may not have the legal protection, you can still take advantage of the ‘chargeback’ scheme within 120 days. As Money Saving Expert Martin Lewis explains:
"While it’s not a legal protection like Section 75, this is a core protection in Visa, MasterCard and American Express’ rules and it can swiftly help people get their money back".
Lastly, your travel insurance company could also fork out for any cancellations – providing you’ve chosen a policy which covers ‘airline failure’ mishaps.
Our key tips
While Thomas Cook have said you’ll be fine to book a holiday in confidence, it’s always worth being cautious. To make sure your summer goes smoothly, it could be worth following these top tips:
Check your travel insurance – when you’ve got the insurance sorted (which should be as soon as you’ve booked!), make sure your policy covers ‘airline failure’ cancellations
Book a package holiday instead of separate flights and accommodation to get added Atol protection
Use a credit card to book at least some of your trip – as long as you’ve spent over £100, the total cost of the holiday will be covered
Disclaimer: All information and links are correct at the time of publishing.