The UK Civil Aviation Authority (CAA) and Air Travel Organiser's Licence agency (ATOL) are warning consumers to check that they are financially protected when booking a holiday.

While ATOL protected package holidays provide the best level of protection possible, there are other ways of booking trips.  What the CAA is saying is that if not on ATOL package make sure that each segment of the holiday is covered.

A package holiday is a combination of travel elements, such as a flight and hotel stay that is sold by a travel provider in one inclusive price.

Any UK company that sells package holidays which include a flight are legally required to register with ATOL. With the scheme if the travel company you booked with ceases trading, you will either get your money back, or, if you have already begun your holiday, be able to complete your trip at no extra cost.

Follow these two major rules and (try?) to keep up to date with UK Government travel advice.

•    Book on a credit card where possible for Section 75 protection under the Consumer Credit Act

•    Take out travel insurance as soon as you book

Commenting, Andy Cohen, Head of ATOL, said: “As Covid-19 restrictions are eased, even more destinations will be opening up as potential holiday hotspots for consumers. We expect to see an increase in bookings, and it is vital – now more than ever – that consumers make sure they are financially protected when travelling.

“If you’re booking a package holiday, check that your travel provider is financially protected by ATOL for ultimate peace of mind over your money.”