With the news that both Gill’s Cruise Centre and Dream Holidays have collapsed within a week of each other, a large number of holiday makers have been left uncertain about their holiday and what they can do. In this blog I've looked at what exactly happened and provide advice for holiday makers after the collapse of Gill's Cruise Centre and Dream Holidays.

It is at times like this that the ATOL system really shows its worth as it means that holiday makers are not left high and dry by travel companies going out of business and are able to continue their holiday or get a refund. In a tumultuous week for the travel industry, Cardiff based Gill’s Cruise Centre and holiday company Dream Holidays, both stopped trading after being unable to meet their debts.

Gills Cruise Centre Cancels Holidays

Gill’s Cruises are no longer taking bookings, leaving hundreds of holiday makers in limbo over the future of their holidays. The firm posted an announcement on their website stating:

“Gill’s Cruise Centre regrets that it is unable to accept new enquiries.”

Several cruise lines pulled the holidays they provided through Gill's Cruise Centre over fears surrounding the companies debt. The decision has left many holiday makers wondering what will become of their holidays. There is good news however: ABTA, the industry body, have said anyone who bought their holiday through Gill’s Cruises is guaranteed to receive a full refund. But, if you do have any concerns you should contact your cruise company directly. The details should be on your confirmation invoice.

Those cruise lines that withdrew their holidays from Gill’s include:

• Carnival UK,
• Royal Caribbean Cruises,
• Celebrity Cruises,
• Azamara Club,
• and Fred Olsen

Gill’s have said any existing clients with queries should telephone the agency’s client services department on 0845 460 6094.

It is worth noting that cruise providers have been receiving holiday makers’ money directly, and not through Gill’s, for some time, so the majority of holidays will be safe. For those who have lost their holiday, all the bookings were protected so you will be able to get a refund as your money is safeguarded.

Dream Holidays Also Go Bust

Dream Holidays, a firm that specialised in package holidays mainly to Egypt, Cyprus and Greece, this week closed its doors and ceased trading, leaving almost 1,500 affected by the collapse. The Civil Aviation Authority is now working to arrange the return of around 530 holiday makers currently abroad on packages bought through the operator.

The CAA are also working to make sure holiday makers can stay in their accommodation until their holiday is due to end and then return them as close as they were scheduled to fly back as possible.

The Importance of ATOL When Your Holiday is Cancelled

Again this shows the crucial safety net ATOL provides the consumer. The holiday industry is currently in the grip of a major downturn: economic troubles and financial uncertainty mean many of us just aren’t spending our money on foreign holidays or trips abroad. With mounting debts and fewer paying customers, tour operators are finding life difficult. Only a month ago another firm, Hotel Connect, had to cease trading and this week Thomas Cook issued a profits warning. These wont be the last travel companies we hear having problems.

For holiday makers the Gill’s Cruise Centre and Dream Holidays situation is both a cautionary tale and the perfect example of how important ATOL protection is to consumers – guaranteeing their holiday or refund and safeguarding their investment.

Advice: My Travel Company, Holiday Provider or Tour Operator Went Bust - What Can I Do?

Here is some key advice for any holiday makers worried about a holiday booked with a travel company that's gone bust or what they should do if their tour operator collapses while they are on holiday:

• You will be able to continue your holiday as normal or get a refund. ATOL protection means that if you are on holiday and your travel company or tour operator goes bust, and they were based in the UK, it will not end your holiday. The ATOL protection and the CAA make sure you continue to stay in the hotel or accommodation and will get you home as usual or as close to the scheduled flight as possible. If you have not yet set off on holiday the money you paid is protected and you can receive a full refund.
• If you are away and are forced to repay for your accommodation– keep your receipts. If you are currently on holiday and your travel company goes bust, your hotel may ask you to pay again for your accommodation. There have been reports that this is the case with some Dream Holiday customers as the hotels have not been paid by Dream. If you are forced to repay, keep your receipts and when you return send your claim for a refund to the CAA.
• If you are booking a holiday always look for ATOL. This is your safety-net should they stop trading. Look for the ATOL symbol or ask your travel agent or tour operator if you are protected. This is only available on package holidays, not on holidays where you book the separate components or if your travel company brings together the separate components for you – known as dynamic holidays. Ask your travel agent or travel company if you are not sure.
• Credit Cards offer additional protection. If you book on a credit card or Visa Debit, this will offer a degree of additional security and protection. Under Article 75, credit card companies are legally obliged to refund goods and services that you never received as long as they are over £99 and less than £30,000.
• Travel insurance may also provide protection for your holiday if the travel company collapses, but this is dependent on your policy. Check to make sure as some insurance policies do not cover the collapse of your travel company.
• Need more advice? If you have any questions or queries about your holiday speak to your travel company or if that is not an option the CAA.