Airlines, package holiday and tour operators go bust. Make sure the company you book with is protected by ATOL. If it does goes bust you will get a refund or a flight home if you are already there.

Make sure you book all other flights and holidays that cost more than £100 with a credit card NOT a DEBIT CARD. If the airline goes bust you should get a refund from your credit card company as your contract for the tickets is with them and not the airline. You will not get a refund if you use your debit card or if the ticket is under £100.

Credit card companies REFUSE to pay Holiday refund

If you are the main credit card account holder. DO NOT pay for you holiday or flights with your spouses credit card. You will not be covered if the travel company or airline goes bust. The banks are using a loophole in the consumer protection law to avoid paying out.

Make sure the main credit card account holder pays for everything. A husband and wife were out of pocket when they tried to get a refund from their credit card company for tickets and holiday accommodation paid for on a Travel company's website using the wife's credit card. The Travel Company went bust.

The bank said that they did not pay out in these circumstances as the secondary card holder was not covered as the contract for the holiday was not with the principle card holder. We have the credit card contract with the principle card holder only.

Therefore as the principle card holder has no claim against the travel company because they did not book the holiday they cannot make a claim against the credit card issuing bank for a refund.