Thomas Cook has sadly collapsed, all flights and holidays are cancelled. This article has been updated so this is what will happen if you are a Customer. Please keep calm, yes it will be inconvenient and frustrating but no panic need. All Thomas Cook staff have lost their jobs. It’s a very sad day. Read on. The CAA rescue operation has started to bring home all 150,000 passengers.
UPDATE – Flybe customer need to knows post here
Package Holiday bookings. This is where you have booked a holiday including flight and hotel as a package from Thomas Cook. If you booked a Thomas Cook flight and hotel ‘together’ for example through a third party (like Expedia), you will probably be covered but it depends on how you booked, and with who. Package holidays are protected under the ATOL scheme which is run by the Civil Aviation Authority (CAA). The CAA are prepared for the potential collapse. They know what they are doing. Remember Monarchs 2017 collapse?
Already on holiday? Enjoy your holiday and keep up with what’s going on but don’t let it spoil your holiday. The ATOL Scheme ensures that anyone on a package holiday will be able to complete their breaks as planned and will be flown home at the end of it, with no extra cost. Obviously this is a mammoth task with over 150,000 UK customers currently abroad, so it could take a while, and you may have to move hotels while you are waiting for your flight back, you may even have to pay and apply for a refund via the CAA site which will have all the updated information as it happens. Be flexible. You will get home, maybe pre-warn work, schools etc and if you have airport car parking then let them know. Being irate, angry or annoyed will not change the situation, as it is out of your control. So relax and enjoy the extra time away . Extra free holiday.
Have a holiday booked? The ATOL scheme kicks in and your holiday will be immediately cancelled and refunded in full. Gutting yes but you can take some time to find another holiday. If you were booked to go soon then the prices are likely to be higher so be smart and look at all the options, panic booking a new one could be a costly mistake.
Flight only booking? The rules are different here as Thomas Cook Airlines are not covered by ATOL. This means that if Thomas Cook collapses you will not automatically be covered. UPDATE CAA has confirmed they will bring home ALL passengers, including flight only bookings.
Already on holiday? In theory you will have to sort out your return flight yourself, at your own cost. And claim the cost of your original flight from your travel Insurance, or if paid by credit card then through that (S75). The reality though is that you will be repatriated along with package holiday customers. This is what happened when Monarch collapsed. No one was left stranded. HOWEVER you will have to pay for any additional expenses like hotel etc – The CAA will not refund these. Check your travel insurance carefully, it may be worth ringing them up and seeing what they will cover. Some insurers will help arrange flights back. It’s worth finding out now.
Flight booking for the future? This will be cancelled and you will have to claim the refund either through your travel insurance or credit card. Then start looking for another. Check reward flight availability if you have Air Miles. Or use skyscanner or google flights or Jacks flight club for quick finds, then look for specific offers, deals and cashback. Be calm and methodical, try not let stress spoil the search. Maybe you will find a better deal
Got a Thomas Cook gift card? This will be useless once they’ve gone under so get online and SPEND THEM NOW IF YOU CAN. Book an ATOL protected holiday and should the collapse happen then you will get a full refund. UPDATE. These are now useless unless. If they were bought on a credit card, the purchaser can claim a refund
Any extra compensation? No – you will get home and you will be refunded. The £600 million cost will be met by the Government, CAA, insurers and credit card companies. Over 9,000 people will lose their jobs and the damage to the British Economy will be huge – Thomas Cook has been trading for 178 years and it will be a devastating loss. Expecting compensation would be selfish.
How can I avoid this happening again? There are ways you can be prepared and there are signs that an Airline or holiday company is in trouble. Thomas Cook have £1.7 billon of debt, they have already had a £900million injection. ATOL gives you some protection if you book the package holiday. If you are booking flights and hotels separately then you need to plan and book smarter.
Always, always, always do these 2 things. Pay for your holiday / flight on a credit card. This gives you Section 75 protection, which means the credit card company will refund you. ( Also for Air Miles of course) and get decent travel insurance as soon as you book. For example, If you do not have travel insurance now then you cannot buy it today and be covered for any collapse, same with cancellations for the BA pilots strike. You are only covered for things that were not announced at the time of taking out the insurance.
Have you been stuck at the airport? Let me know your story in the comments. What tips would you share?
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