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Holidays 4u collapse - your rights
For the thousands of tourists who booked holidays with Holidays 4U with visions of spending an exotic summer vacation in Turkey, their dreams have rapidly become a nightmare. The Brighton-based travel company has gone bust, stranding an estimated 12,000 holidaymakers overseas and upending the bookings of over 50,000 people.
Fortunately for customers’ of the company, which specialized in travel to Turkey and also traded as Aegean Flights, they have a safety net in the form of the Civil Aviation Authority's (CAA) Air Travel Organizer’s Licensing (ATOL) protection scheme. This scheme will enable those abroad to complete their holidays and for those who lost their bookings to be compensated, a process that is estimated to cost the CAA 9.5 million pounds.
The bizarre collapse of the company, just two weeks after it reported a tripling of its profits has sent shock waves through the travel industry and may undermine consumer confidence in tour operators. The 17 year old company is now being run by PricewaterhouseCoopers administrators.
However, the ATOL scheme will ensure that consumers don’t lose any money as a result of the collapse. While those with bookings will get refunds, those who have paid with credit cards can claim for their credit card companies, which are required by law to refund customers if their goods don’t show up or the company goes bust.
The whole episode serves to highlight the Importance of the ATOL scheme which protects those who have made booking and ensures that no travelers get stranded abroad. Happily for the customers of Holidays 4U, this scheme will ensure that their summer plans don’t go down with the company.