Package holiday organisers 'breaking the law'

26 January 2009 08:04

Package holiday organisers 'breaking the law'

Many package holiday organisers are "breaking the law" by not protecting customers from insolvency, one firm has revealed.

With the recent bankruptcy of the hen and stag night company, Brilliant Weekends, a rival company believes it is even more important that potential customers are aware of the relevant regulations.

Under travel package regulations, by law, organisers must be able to show sufficient security for deposits and prove they are able to refund customers in the event of bankruptcy.

James Baddiley, managing director of Chillisauce, a stag and hen night operator, said: "There is a huge amount of money at risk - especially when you consider the number of travel related companies failing at the moment.

"We urge people to triple check that any travel company they consider purchasing from is complying with the regulations and fully protecting their money."

Mr Baddiley added that many "unscrupulous operators" broke the law by putting their customers' money at risk.

Research earlier this month found that over 40 per cent of British holidaymakers prefer to travel on a package deal.ADNFCR-1320-ID-18790787-ADNFCR

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