What are your rights if a holiday company goes bust?

Thousands of Brits have been left in limbo after UK travel company Great Little Escapes collapsed, just weeks before the summer holidays begin. If you’ve booked a holiday with a travel firm that’s suddenly gone under, it can feel like the dream trip you’ve saved up for has vanished into thin air.

But don’t panic, here’s what you need to know about your rights and how to get your money back.

What’s happened?

Great Little Escapes, based in Berkshire, has ceased trading. The company operated under several names, including:

• Great Little Escapes
• Your Holidays
• Tunisia First

It also ran websites such as:

• themaldives.co.uk
• yourholidays.co.uk
• thecaribbean.com
• greatlittleescapes.co.uk

The Civil Aviation Authority (CAA) has confirmed that the firm is no longer trading as an ATOL holder, meaning thousands of customers may now be affected by cancellations or booking issues.

So, what is ATOL and why does it matter?

ATOL (Air Travel Organiser’s Licence) is a financial protection scheme run by the CAA. If a travel company with an ATOL licence goes bust, you’re protected:

• If you haven’t travelled yet, you’ll usually get a refund.
• If you’re already abroad, you’ll be helped to finish your trip and get home without extra cost.

It usually only applies to package holidays that include flights, so if you booked accommodation or travel separately, you may need to look at other options for refunds (more on that below).

What should you do if your holiday is affected?

The CAA is asking customers not to submit a claim just yet, as they’re still gathering details from the company. Claims submitted too early are likely to be rejected.

Here’s what to do for now:

Keep all your booking details – including emails, receipts, confirmation numbers, and payment records.
Check if your booking was ATOL protected – you should have received an ATOL certificate when you booked.
Wait for further instructions from the CAA – they’ll update their website here with next steps soon.

What if I didn’t book a package holiday or don’t have ATOL protection?

If you booked parts of your holiday separately (e.g. flights and hotel independently) or used a company without ATOL cover, you might still be able to get your money back:

Paid by credit card?

You may be able to claim under Section 75 of the Consumer Credit Act (for purchases over £100). Contact your card provider.

Paid by debit card?

Try a chargeback through your bank. It’s not a legal right like Section 75, but banks may still be able to help recover your money.

Bought travel insurance?

Check your policy carefully, some include cover for end supplier failure or similar terms.

Booked through a travel agent?

The CAA has also told travel agents who worked with Great Little Escapes not to refund customers directly until they’ve received specific instructions. So if you used an agent, sit tight and wait to hear from them or the CAA directly.

In summary

• Don’t submit a claim yet – wait for the official advice.
• Check your ATOL certificate to confirm you’re covered.
• Keep records of everything related to your booking.
• Look into Section 75, chargeback, or travel insurance if ATOL doesn’t apply.