Yet more Christmas Holidays cancelled – but this time the holiday compensation is all in the Package


Within the space of a few days yet another Travel Group has gone into administration, leaving 100 customers stranded abroad and 4,000 more with cancelled holidays and a less than merry Christmas to look forward to.

However, unlike the 3,400 Flyglobespan customers unable to claim holiday compensation because they booked their own flights online – Flyglobespan being the Scottish holiday flights business which went into administration on 17 December 2009 – at least customers of the Allbury Travel Group should see their holiday bookings’ money refunded.

The Allbury Travel Group went into administration at midnight on 20 December 2009 with the loss of its trading brands Libra Holidays, Argo Holidays and JetLife which all provided package holidays to travellers seeking the sun in Greece, Cyprus and Egypt.

However, as Libra, Argo and JetLife sold their package deals mainly through travel agents it means that disappointed customers will at least be entitled to a refund on their cancelled package holiday costs. That’s because they are covered by the Package Travel Directorate 1990, so they are entitled to claim their money back now that the travel company behind the holidays has gone into administration.

All disappointed holidaymakers have been advised not to go to their departure airport as all Allbury Group package holidays have been cancelled.

However, they are being urged to contact the Civil Aviation Authority (CAA) to submit their compensation claims for the cancelled holidays. In fact, as soon as the Allbury Group went into administration, the CAA began making arrangements for holidaymakers’ refunds.

These potential holidaymakers are 'lucky' in a way as they will at least see their money refunded, albeit having missed out on their much-anticipated Christmas holiday abroad. But as more and more people put together and book their own 'bespoke' holidays online, we believe that the Package Travel Directorate needs to be extended to provide cover for those travellers not already covered under its remit.

To be fair, the European Commission is already looking into providing cover for holidaymakers who put together their own holidays using the internet (known as a 'Dynamic Package') and here at Simpson Millar LLP Solicitors we look forward to a positive outcome for the thousands of people currently unable to claim compensation when a holiday goes wrong.

We’ll keep you informed of any progress made in the coming months.

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