The New ATOL Explained: Is Flight-Plus any good ATOL?

The news of the extension of the new ATOL scheme to cover separate flights and hotel bookings, and not just package holidays, was met with a mixed response - the change was welcomed but many felt it doesn't go far enough.  But what does the new ATOL scheme cover and what doesn't it cover.
Will your holiday be protected by the new ATOL scheme?


Picture the scene, you have just had an amazing holiday full of sun, sea and sand. You've forgotten about all the worries at work awaiting you when you come back, your batteries are well and truly recharged and you arrive to the airport ready to go home.
Suddenly you are told there’s a problem with the airline and nobody knows how you will get back home or who is responsible for your safe passage home.
Now initially this may seem like paradise, getting extra time in the country that you have been gallivanting around for the past week in an effort to refresh and replenish yourself. However, the sad reality of it is, a lot of the time this means long queues, long delays, mass confusion and “sleeping rough” in the airport.
Does ATOL Flight-Plus banish this to the past? Let's see...

New ATOL Flight Plus Scheme Explained... Am I covered?

ATOL is a financial protection scheme managed by the Civil Aviation Authority (CAA). All travel companies selling air holiday packages and flights in the UK are required by law to hold a licence called an Air Travel Organiser’s Licence (ATOL), which is granted after the company, has met the CAA’s licensing requirements.
In the event of an ATOL holder’s failure, the ATOL Scheme ensures customers who have paid and contracted with the ATOL holder for an air holiday package or a flight, do not lose the money paid over and more importantly are not stranded abroad!
The new concept of the flight-plus holiday is when a holidaymaker buys a flight and accommodation and/or car hire together, either on the same day as the flight, the day before or the day after from the same travel company. This is what makes up a flight plus holiday. Whilst it looks like a 'normal' package holiday, it is NOT protected under the Package Travel Regulations. I won't go into the make up of a 'Package' here but you can read what is a package holiday here.
Under the new regulations when you buy a flight-plus holiday you will also (from October 1st 2012) be given a standard, recognised certificate so that you know whether your trip is protected or not.
Good news?
This means an estimated 6 million holidays will now be protected by the reforms in the scheme.

What's not covered by the new ATOL scheme

Even though this reform is a step in the right direction, ABTA (the Association of British Travel Agents) estimates that a whopping 44% of the market will still be unprotected. This is mainly because holiday sales by airlines are not included within the scheme. for example, if you buy your flight, hotel and hire car from an airlines website you will not be covered should the airline collapse.
My view is that even if it costs a little bit more, the extra protection you get from a holiday regulated by the Package Travel Regulations can be invaluable. Not only do you get financial protection, the travel company also needs to ensure your safety whilst you are in resort (obviously only in the parts they book for you - but still worth the peace of mind).
I suppose that whilst Flight-Plus is a poor second, it is better than having no protection at all.

For more information about Accident Abroad you can visit the website at: http://www.accidents-abroad.com/