cancelled package holidays will get their money back if the issuing travel firm goes bust. The Civil Aviation Authority (CAA) said the Department for Transport had provided "much-needed clarity" by confirming that such cases will be covered by the Atol scheme.
Package holiday customers whose trips have been cancelled due to the coronavirus pandemic are entitled to a cash refund, although many travel companies are offering refund credit notes in the first instance to help maintain their cash flow.
Credit notes allow customers to re-book their holiday or request their money back at a later date, but there have been doubts as to whether they are protected by Atol.
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