1800 Hotels Goes Bust – How To Future Proof Your Holiday
Posted on July 13, 2010 by Fiona Hilliard
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As huge numbers of distraught 1800hotels.com customers flood internet forums, blogs and national airwaves to vent their frustration at the site’s closure, holidaymakers everywhere are wondering how they can protect themselves from a similar fate.
You could do a lot worse than checking out a new site called ProtectMyHoliday.com. The site aims to provide insurance policies to cover costs when travel companies go bankrupt. It launches at a time of much instability within the travel industry.
Research carried out recently by Defacto found up to 77% of travel products do not provide travel protection when there is a risk of closure.
Commenting on the new service, Michael Ward, International Passenger Protection Ltd Key Account Manager said: “With over 75 airlines collapsing since the start of the recession plus continued record losses in the airline and travel sectors, it is vitally important those travelling outside of ATOL protection get peace of mind against collapses.”
The website’s new platform offers holidaymakers the opportunity to tailor make their insurance policies, This includes bookings relating to airlines, hotels, car hire, as well as theme parks, the Civil Aviation Authority organises ATOL protection for some bookings but this has become trickier since more holidaymakers book different bits of their break from other operators. Those not travelling by air or visiting friends or relatives and business travellers may also be affected.
Travel Insurance policies are inclined to favour package holidays over regular flight bookings when the company goes into liquidation, but this is worth checking. Your travel insurer will probably point you in the direction of ATOL first.
You can also check whether you are covered if you book with your credit card. Under the terms of the UK Consumer Credit Act, the credit card company is jointly responsible and you can claim a refund from your credit card provider in the UK. In Ireland, meanwhile, the situation is less black and white and your case depends on your credit card provider. Check your policy. If you’re not satisfied, shop around and find one that offers sufficient cover.
Discussion: 9 Comments
9 Responses to “1800 Hotels Goes Bust – How To Future Proof Your Holiday”
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bernadette clarke
- 15th Jul, 10 03:07pm
Can you actually give any information as to what we can do to get our money back from these b*stards. It is very strange as the hotel in spain confirmed our reservation yesterday morning but amazingly the reservations had disappeared of the face of the earth by the afternoon. Companies like these are thieving b*stards and I thinks there has to be something we can do. What are our legal rights? Balance for holiday was paid in full by 21.6.10.
Fiona Hilliard (author comment)
- 15th Jul, 10 04:07pm
Hi Bernadette,
Sorry to hear about your situation. Must be awful to think that you have no comeback at this place in time.
The unfortunate thing is that legislation protecting travel consumers was written in 1982, well before the age of the internet. This means that when you book with unbonded companies such as 1800 hotels you are offered little legal protection.
You may be lucky to get your money back through your credit card company. It might be worth giving them a call. If you paid with laser/debit card though you may not be as fortunate and you’ll have to check whether you’re covered by any travel insurance that you might have.
Hope it gets sorted for you.
Fiona
Gail Hilton
- 23rd Jul, 10 11:07am
1800 hotels confirmed my booking for a hotel in Finland on 29th June and when we arrived on 14th July we were told by the hotel that it had been cancelled and after 3 days found out that 1800 hotels had filed for bankruptcy. Thankfully the hotel had two single rooms and accomodated us. However that meant paying again. How do I get a claim form to file – Are there administrators in American bankruptcies?
Colin Evans
- 30th Jul, 10 07:07am
I am in the USA at the moment. I was not aware that 1800hotels had gone through. The USA/Canadian part of the company are still advertising on the NET.
I had a reservation cancelled by fax 2-3 days before I arrived. It was quite a shock to discover what had happened. Having no hotel room during the height of the tourist season was not funny.
I must congratulate the Best Western Group for helping me & my Family to find alternative accomodation the first night, and then fitting us in for the next two. But I still have to pay a second time. A company called Guliver Travel Associates are contacted the hotel and cancelled my reservation.
To my horror I discovered that the same company cancelled another reservation for Sunday and Monday evenings. So much for a holiday of a life time!!!
Thank heavens all the other hotels were booked with Expedia.
How can these companies get away with it????????? I am even more annoyed that I did not receive any prior notification. Gullivers Travel Associates can contact the hotels to cancel my bookings but did not have the decency to notify me a customers who has already paid. If I walked into a shop and stole some items I would be arrested. How can a company simply disappear??? There has to be a change in the law?
From a very angry Colin who is still going to do his best to enjoy this special holiday with his family.
Fiona Hilliard (author comment)
- 11th Aug, 10 04:08pm
Hi all,
I’ve just posted some news re: 1800Hotels on the blog. See: http://blog.arguscarhire.com/1800-hotels-makes-a-comeback/
Gail – you’ll find a link to the claim form in the article. Colin – hopefully you will get your money back – I recommend you start proceedings ASAP.
Janzbro
- 8th Sep, 10 03:09pm
Im in a similar dilemma, we booked the Encore for my 40th Birthday back in April but received a notice recently from 1800hotels stating that “Travelers who booked hotel rooms prior to July 14th should expect their reservation to be cancelled by one of our suppliers.Please check with your hotel to confirm. Reservations may be cancelled even after receiving confirmation. Travelers who find their reservations are cancelled may seek a refund by submitting this form to the bankruptcy court in Florida”
We have rang Encore twice (once when we heard about the bankruptcy and again after receiving this notice) and have been assured by Enorce bookings that the room has been paid in full by the third party and we have received a booking ref number.
After assuming everything was still OK until I read this review for the Encore
tripadvisor.co.uk/ShowUserReviews-g45963-d11…
We have booked with T.I. direct as a back up (this can be cancelled upto 48hrs before) – do we take a chance and turn up at the Encore or should we just take the T.I. that is G/teed
Janzbro
- 8th Sep, 10 03:09pm
P.S. were do I stand as I booked by credit card back in April but you state “you’ll usually only have 60 days from the date of purchase to file your case” – it was already over 60 days before the I was informed my booking might have been cancelled but they took payment back in April
Fiona Hilliard (author comment)
- 8th Sep, 10 04:09pm
Hi Janzbro
Is there any way you can get the hotel to confirm to you in writing (by email or otherwise) that the money has been paid in full? In cases like this, it’s always a good idea to have some form of written confirmation as proof of agreement.