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Credit cards 'a good idea when booking DIY holidays'

By Sarah Engle, Mon 2 Aug 2010 - Published in Credit Cards

People should consider using their credit cards when putting together their own holiday, it has been suggested.

A spokesman for the Civil Aviation Authority pointed out that using the products gives holidaymakers a degree of "financial protection" in the event of an airline collapsing or other emergency.

The representative added that the Air Travel Operators Licensing (ATOL) scheme only covers package holidays and will not allow people who have created a DIY vacation to make a claim should unexpected events occur.

"Obviously [passengers] are strongly encouraged to use a credit card because then they are covered under the Consumer Credit Act," he commented.

In addition, the spokesman reminded people that they can take out specialist travel insurance which covers them against an airline collapsing if they are especially worried about this eventuality.

Last week, transport secretary Philip Hammond suggested that a £1 per passenger levy could be used to create protection for customers whose holidays are not covered by ATOL.