As the winter chill sets in, thoughts across the UK are turning to sunnier climes. Despite ongoing cost-of-living pressures, the annual holiday remains a non-negotiable for many Britons, with travel firms forecasting a 5% rise in bookings for 2025. If you're among those plotting an escape, securing your financial investment is paramount. Here’s your essential guide to booking with confidence and avoiding costly scams.
The Unbeatable Safety of Package Holidays
While piecing together a DIY trip can feel adventurous, a package deal often provides superior peace of mind. Any UK company selling flight-inclusive holidays must be part of the Air Travel Organisers’ Licensing (Atol) scheme. This vital protection, which requires booking a combined flight and hotel package with a UK-based firm, ensures you won't be left stranded or out of pocket if the operator collapses.
Guy Hobbs, a travel expert at Which?, strongly advocates for packages. "We always recommend booking a package holiday as the Atol scheme ensures you won’t be left out of pocket or, worse, stranded abroad," he states. This booking method also brings the robust Package Travel Regulations into play, making the operator legally responsible for resolving issues from wildfires to substandard hotels.
Modern packages aren't just poolside lounging; they can be as intrepid as a cycling tour of Sri Lanka. Crucially, if you book flights and accommodation in a single transaction from the same company, it’s legally a package. Online agents like Expedia or Lastminute.com offer Atol-protected breaks, but you must read their policies carefully to confirm what's covered.
Smart Payment: Your Financial Shield
How you pay is as important as what you book. The gold standard is using a credit card. For purchases between £100 and £30,000, Section 75 of the Consumer Credit Act makes your card provider jointly liable if something goes wrong. This protection is not available with debit cards, bank transfers, or increasingly popular Buy Now, Pay Later (BNPL) options, where you must typically pursue the retailer yourself for redress.
Be wary of scams, particularly on accommodation platforms. Which? research found hundreds of recent complaints on Booking.com reviews where users paid for non-existent properties. The platform states cybersecurity is a top priority. For flight-only bookings directly with an airline, Section 75 can be a lifeline if the carrier fails.
Cancellation Policies and Cost Considerations
Flexibility costs. Most package holidays are refundable on a sliding scale; cancel 70+ days before a Jet2holiday, for example, and you lose just the deposit. Cancel within a fortnight, and you forfeit the entire cost. For DIY flights, Ryanair offers no refunds, while easyJet charges a £49 fee for cancellations within 24 hours of booking.
Booking.com and Expedia offer 'free cancellation' hotel rates, but this convenience carries a premium—anywhere from 4% to 40% more. This option allows you to rebook if prices drop. For value, Spain’s Costa Blanca remains Europe’s cheapest peak-summer destination, with week-long August packages averaging under £900 per person, according to Which? Travel.
The Critical Importance of Early Insurance
One of the biggest mistakes travellers make is delaying insurance purchase. Buy your policy as soon as you book to secure crucial cancellation cover. This protects you if a serious illness or accident affecting you or a close relative forces you to cancel.
"We can’t emphasise enough how important it is to buy travel insurance as soon as you book," stresses Hobbs, who advises against policies sold by holiday companies or airlines. Be scrupulously honest about medical conditions and update your insurer on any health changes post-purchase to maintain valid cover. An annual multi-trip policy can offer cost-effective coverage for all your yearly getaways.
With demand rising, savvy planning and knowledge of your financial protections are the best tools for a stress-free and secure holiday in 2025.
