What Is End Supplier Failure?¶
When you book a holiday, you’re usually thinking about flights, hotels, and things to look forward to - not the chance that one of those companies might collapse. Yet it does happen, and when it does, travellers can face sudden costs or lose services they’ve already paid for.
End supplier failure describes the situation where the travel company responsible for providing part of your trip - such as an airline, hotel, ferry operator, car hire firm, or cruise line - goes into administration or stops trading. When that supplier can no longer deliver what you booked, your arrangements may fall through entirely.
Below is an outline of the protections available in the UK and what steps you can take if this happens.
What to do if your end supplier goes bust (UK guidance)¶
1. Check whether you booked a package holiday with ATOL protection
If your booking is a UK-sold air travel package and you received an ATOL certificate, you’re covered under the Civil Aviation Authority’s ATOL scheme.
- If your trip hasn’t started, You should receive a refund for the affected parts of your holiday.
- If you’re already overseas, ATOL will organise your journey home.
ATOL protection applies specifically to air travel packages purchased in the UK.
2. If you paid by credit card
Under Section 75 of the Consumer Credit Act 1974, UK credit card payments between £100 and £30,000 carry strong consumer protection.
If the supplier becomes insolvent and can’t provide the service, the credit card company can be jointly liable, even when you booked through an intermediary.
This means you can request a refund directly from your card issuer.
3. Look for ABTA protection
For land-based or sea-based travel arrangements - like coach holidays, rail trips, or cruises - your booking may be protected if the company is an ABTA member.
ABTA can offer refunds or alternative arrangements when a member company fails.
However, ABTA does not protect flight-only bookings.
4. Contact the insolvency practitioner
If none of the above protections apply - no ATOL, no ABTA membership, and no Section 75 route - you may still have an option.
When a company collapses, an administrator or liquidator is appointed. They sometimes arrange limited refunds or issue guidance for customers. It’s worth checking their official notices.
What if the supplier collapses while you’re abroad?
If the failure happens mid-trip:
- Contact ATOL or ABTA if your booking is covered by either scheme.
- If you have no formal protection and are stranded, reach out to the nearest UK consulate or embassy for support.
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