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The aim of the ATOL scheme is to offer customers whose holiday company becomes insolvent a full refund or repatriation at the end of their trip, if they are already abroad. The scheme has been running since the 1970s and the new changes will come into effect from April 30th.
These changes include coverage for "Flight-Plus” holidays sold by tour operators and travel agents. Before the update, these deconstructed package holidays were sold in such a way that they fell outside the remit of the scheme.
According to the latest update, passengers will be given a standard, recognised certificate at the point of purchase, so they know whether their trip is protected by the ATOL scheme or not.
Aviation Minister, Theresa Villiers, said that these changes will provide much needed clarity and reassurance for millions of people booking their holidays.
"These reforms will equip ATOL to deal with the realities of the modern holiday market, enabling the scheme to protect holidaymakers for many more years to come. This is an important step forward for consumer protection,” added Villiers.
Holidays abroad – Travel insurance and car hire companies
Other issues that UK holidaymakers should keep in mind when spending their holidays abroad is finding the best deals in regard to travel insurance and car hire.
Many travellers still leave these important decisions until the very last moment, which usually compounds their stress levels and leads to them purchasing products that may not fully meet their needs.
To avoid this situation, holidaymakers should compare travel insurance and car-hire offers in advance, so that they can secure the best deals.
Car hire insurance, for instance, is almost always cheaper through price comparison sites than buying from any car hire rental company or broker. Compare car hire insurance to find the best deal and reduce the price of your holiday.