Collapse of Zoom highlights confusion over financial protection
30.08.08
After the collapse of Zoom Airlines this week, a survey by Thomson Holidays found that over 90% of holidaymakers said that having their holiday financially protected was important to them. However, the survey also found that consumers were confused with over 50% of holidaymakers wrongly believing that booking a scheduled flight directly with an airline meant they were financially protected in the event of bankruptcy.
Currently the reassurance of financial protection is only available to customers who choose to travel on a package holiday with an ATOL bonded company. A customer who books a scheduled flight direct with an airline is not given the same financial protection, although they may be protected if they bought their flight via a credit card and it cost at least £100.
Thomson’s Commercial Director, David Burling, said: ‘The collapse of Zoom highlights that it is time the Government puts in place a proper system of financial protection for passengers. The EU wants all consumers to be protected whilst on holiday; however only approximately a third of UK holiday makers travel on a package which is financially protected. Continued lack of Government action leaves the remaining two thirds at risk. Until action is taken, the only sure way for UK passengers to holiday knowing their money is financially protected is to travel on an ATOL bonded package holiday.’
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