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Holiday end supplier failure

These days package holidays are becoming less popular, as people book individual parts of their trip, such as the hotel and flights, separately.

However, this can lead to problems if one aspect of the holiday is unavoidably cancelled or delayed, as travel insurance is often tailored towards package holidays.

John Brady, Head of Commercial at John Lewis Insurance, tells us about End Supplier Failure Cover and how it can protect individual parts of your trip.

Q&A with John Brady

Q. What’s your background and what experience do you have in providing advice about Travel Insurance?

A. I've worked in financial services for 20 years, including banking, credit cards and insurance. The last six have been spent at the John Lewis Partnership, where I’ve helped to launch and develop John Lewis Insurance, including our personal insurance cover for cars, weddings, pets, homes, events and of course, travel. I love travelling, seeing new places and getting away from the hustle and bustle of daily life.

Q. What is End Supplier Failure?

A. More and more people are now booking parts of their trips separately, rather than choosing a package holiday. End Supplier Failure occurs when an independent supplier, such as a hotel or airline, goes bankrupt.

Quotation MarksMany people don't realise that if you book travel and accommodation separately you might not benefit from the protection that usually covers a package holiday.Quotation Marks

Q. Can you give me some other examples of End Supplier Failure?

A. End suppliers include:

  • Scheduled airlines or non-bonded cruises
  • Car hire companies or coach operators
  • Caravan sites
    or campsites
  • Safaris or excursions
  • Theme parks (such as Disneyland)
  • Hotels, overseas villages or cottages in the UK

Q. Won’t I be covered by ATOL?

A. You’ll only be able to claim under the government’s ATOL scheme if you bought the service through a tour operator or as part of a package holiday. If you book a package holiday (flights, accommodation, transfers etc.) you'll be protected by the Civil Aviation Authority (CAA) under the Air Travel Organisers’ Licensing (ATOL).

£1 per person of the cost of your air holiday package is paid to the CAA to provide ATOL protection for you.

However, if you book your flight and hotel separately at different points in time, or book through a company which isn’t protected by ATOL, you might
not be covered.

Q. Am I covered under my Travel Insurance?

A. Yes, if you’ve taken out our Plus or Premier Cover then you’re covered against End Supplier Failure. End Supplier Failure Cover is provided by International Passenger Protection (IPP) Limited.

Q. What’s included in the cover?

A. If one of your end suppliers becomes insolvent and the service isn’t part of a package holiday, then IPP will pay up to £1,500:

  • If you haven’t departed, then you’ll be entitled to claim for irrecoverable costs already paid;
  • If you’re currently mid-way through your trip, you’ll be able to claim for proportionate costs to replace the suppliers failure; or
  • You’ll be able to claim alternative travel arrangements back to the UK if you’re forced to cut your trip short.

Q. Have you got any other expert tips about Travel Insurance?

A. If you’re going on holiday there’s only so much you can do to ensure your trip is a success. However, it’s always worth erring on the side of caution
before booking:

  • If a holiday deal seems almost too cheap, there may be a catch
  • Read online reviews of companies before booking, especially if you’ve never heard of them
  • Always read the small print of any booking forms or contracts
  • If possible, book your holiday using a credit card as this can provide
    extra protection
  • Make sure your Travel Insurance covers you against End Supplier Failure
  • Check whether or not the companies you’re using are protected by ATOL

For further tips and advice, please see our quick guide (PDF).

John Lewis Travel Insurance homepage

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