Villas inside and out

It hasn't been a great year for travel agencies - neither has it been for the thousands of passengers left without the holidays they had paid for.

At least many of them have received compensation. Research carried out by shopping comparison website Kelkoo Travel shows that a total of 74,000 holidaymakers reclaimed £26 million in compensation following the 24 travel company collapses last year.

Still, it's estimated that 6,000 consumers (8%) who have been affected by a travel company failure in 2011 are missing out on £2 million of refunds for which they are eligible - mainly because they haven't submitted claims.

Also, having the money back is not always the end of the problem. According to Kelkoo 71% of consumers would find it a financial strain to re-book their holiday while waiting for compensation.

But if you think that these are bad figures, look at the catastrophic ones for the previous year: 29 companies failed affecting 189,000 passengers and resulting in £47 million worth of claims being paid in 2010.

The average claim per passenger has risen though. In 2011 it was £353, compared to £250 in 2010. If we talk about long-haul trips the difference is negligible: £1,173 and £1,142 respectively.

The worst failures occurred during the peak season, when customer bookings and deposits are at their highest. And the biggest collapse was Holidays4U in August, which led to 62,000 customers losing their holiday and even 12,000 travellers being repatriated.

Kelkoo managing director Chris Nixon said: "Economic conditions in the holiday market have been incredibly challenging in 2011 with travel companies having to contend with factors such as rising fuel costs and the impact of air passenger duty.

"But it is reassuring that significantly less holidaymakers were affected by travel company collapses this year compared to 2010.

"Unfortunately, 2012 will see other holiday companies go to the wall, so travellers booking their summer holidays over the next few weeks should check that they book with an Atol-protected company, so they can be sure that if their travel company does collapse, then they will be compensated."

Be the first to comment on this.