Posted on November 30, 2009 by Fiona Hilliard

Cut to September 12th 2008.  XL Leisure Group, based in Crawley, West Sussex had just broken the news that it was going into liquidation, leaving thousands of holidaymakers stranded abroad and many more thousands out of pocket at home.

It was a mess.  The travel industry knew it, holidaymakers knew it, but most importantly, the EU knew it. Consumer protection was needed – and fast.

Most of these passengers were compensated in some way  but some still have a long road ahead of them, trying to get their money back from credit card providers.  So, in an exercise in damage limitation, the EU is now turning its attentions to independent holidaymakers.

Holidaymakers who book getaways without travel agents, e.g. book their own flights, car hire and accommodation are set to receive improved compensation if they receive poor service or their travel company goes bust – that’s if new plans by the European Commission get the go ahead.  Currently only holidaymakers who travel with companies holding an Atol bond are guaranteed a receipt or refund if an operator collapses.�
The commission identified 23% of EU holidaymakers as having booked “dynamic packages” – basically holidays where you book all the elements yourself.  Ireland and Sweden boast the highest number of DIY holidaymakers, with some 40% choosing to go their own way.

The report is now subject to a period of consultation, which will end in February 2010.

Meglena Kuneva, the EU consumer commissioner spoke passionately about the new plans last week, saying:
“We need tough protection that gives all consumers booking a package holiday the peace of mind they deserve, and we need a level playing field so businesses compete on equal terms.
“I am particularly concerned about the issue of insolvency. Anyone who saw the TV pictures of thousands of holidaymakers stranded at airports after bankruptcies from Sky Europe to XL, Futura and Zoom, knows that now is the right time to ask tough questions about extending basic insolvency protection to consumers across the board.”
The legislation that is currently in place dates back to 1990, when the most popular holiday was a two-week package from a brochure booked through a travel agent.