Thomas Cook is on the verge of collapse, leaving thousands of holidaymakers who booked with the firm facing uncertainty regarding their travel plans.
However, if you have already booked a package holiday then you don’t need to start panicking.
In fact if the firm does go bust, you won’t necessarily lose out on your money.
That’s because package holidays booked with Thomas Cook fall under the ATOL protection scheme, which is run by the Civil Aviation Authority.
This scheme covers overseas air holidays booked with a UK travel company, and protects customers from either losing their money or becoming stranded abroad if the travel firm collapses.
If Thomas Cook did go bust before you set off for your trip, then you’ll be provided with a full refund for the holiday.
If the firm went bust while you were already on the holiday, ATOL protection ensures you can finish your break and return home, at no extra cost.
You can find out more in our guide to ATOL protection .
However, it’s worth noting that ATOL protection covers package holidays only.
If you booked your flights and accommodation separately, your holiday won’t fall under the ATOL scheme, and getting your money back could prove more difficult, although not impossible in some cases.
If you booked your flight and accommodation separately, you should contact your credit card company and travel insurer, and check your travel insurance policy for the phrase ‘airline failure’.
You can read more on what to do if Thomas Cook goes bust in our guide to your rights here .
The company is currently still looking to secure funding , and if it is successful then this could prevent its collapse.
If it’s unable to secure the funds, then it could mean the firm is plunged into administration.
Currently there are 150,000 Brits already abroad, meaning that the Civil Aviation Authority would need to pay to get them home.