Money expert told UK holidaymakers about the financial risks of booking flights and hotels separately amid jet fuel shortage fears because they might not be covered
Martin Lewis gave advice for anyone booking holidays amid the Iran conflict(Image: ITV)
Martin Lewis has issued a serious warning to anyone who’s already secured a summer holiday – explaining why booking flights and accommodation separately could prove to be a significant error. In a recent bulletin, the money-saving expert has called on those who’ve arranged trips through major travel companies and carriers, including TUI, Jet2, Ryanair, Wizz, easyJet and British Airways, to take careful note.
Goldman Sachs suggested this week that Britain could face the most severe impact from aviation fuel shortages, citing ‘critically low levels’ of stocks and inadequate refining capacity. The multinational investment bank stated in a research briefing to clients: “The UK is the largest net importer of jet fuel in Europe, and it holds no strategic reserves, leaving commercial inventories as the primary buffer.”
Speaking on his Money Show Live on ITV, the finance specialist addressed an audience member who enquired: ‘If my flight’s cancelled due to no jet fuel will you definitely receive at the moment package holidays give you a certain as well.’ Mr Lewis clarified that travellers would forfeit their accommodation expenses if they’d booked lodgings independently from flights reserved with airlines such as Jet2, TUI, Wizz, Ryanair or easyJet – as they wouldn’t be covered under consumer protection rules. He stated: “No. And I think this is what people need to be very aware of. If you booked a package holiday where you booked everything in one, then under the package holiday regulations and rules and protections generally if your flight went you would get everything back.”, reports the Mirror.
He continued: “And so actually at the moment package holidays give you a certain level of extra security that you wouldn’t get if you did a DIY booking where you bought your hotel and flight separately.” The rationale behind this, he clarified, relates to the hotel booking remaining completely legitimate: “Because the point is if you lose your flight and you’ve DIY booked, there’s nothing wrong with your hotel.
“The issue is you can’t get there. Your hotel is still there. It’s not faulty. It’s not cancelling. So, you don’t have those consumer rights.” Should the accommodation establishment not have breached any conditions, holidaymakers could consider their payment method – though this avenue provides no remedy whatsoever. He explained: “So, you would then say, ‘What about using a credit card or debit card protection?’ It won’t work because there’s nothing faulty.
“And that’s just giving you the same replica rights that you would have with the retailer.” For individuals still searching for a remedy, travel insurance might appear the obvious next step. Mr Lewis disclosed: “So, you’ then say, ‘What about travel insurance?’ This is the bad bit. We were checking 40 travel insurance policies. Of those, only a few would have covered you for the knock-on eventuality of your flight being cancelled due to jet fuel and then your hotel costs.”
“Only about three or four and most of those were package bank accounts where it’s linked to your bank account. Only one standalone provider. So we need to be blunt at the moment. There is a big risk in those circumstances. If you’re booking, you want something with free or limited cancellation quite short before. So you could just cancel it. You should always talk to the provider.
“Government are saying there isn’t one at the moment and they’re working on consolidating flights and doing things so there won’t be one, but people’s hotel costs if they book separately and other knock-on costs are potentially at risk.”
During his ITV programme, he additionally cautioned that failing to complete one crucial task following booking might leave travellers with nothing whatsoever should their arrangements collapse. Given the continuing instability across the Middle East generating considerable concerns regarding aviation fuel availability, Mr Lewis alerted viewers that people who reserve holidays while postponing insurance arrangements could face total losses should difficulties arise during that period.
Mr Lewis stressed that travel insurance should be purchased the moment a holiday is reserved: “The reason you do that is because half of the cover you’re paying for is in case something happens that stops you going before the trip. And if you don’t have the travel insurance place, you’ve got no cover. So, you may as well have it in place. But at this time of year when many people have already booked, I have a slight adaptation, which is this. If you’ve booked and you don’t have it yet, just get it now.
“Get it done as soon as possible.” A Money Show Live viewer called David shared: “I booked flights to Australia for a family group of seven to travel in March next year. I took out insurance immediately. One of our group is now pregnant and can’t travel on the dates planned. It costs £5,000 to reschedule, which I’m happy to report the insurance covered.”
Mr Lewis further addressed the challenges encountered by larger parties: “Very quick aside on that, think of who you’re booking for. So, if it’s a family group and one can’t go, they’ll often cover you. But if there’s a large group of friends going, you often all get independent travel insurance.
Well, then if one can’t go or and you can’t all go on the trip, it’s only the person who’s who’s got that cover. So, you’d need a group insurance policy so that if one can’t go, you all can’t go.” Jet2 revealed today that consumer preference for package holidays as their booking method of choice has risen by 5% to 51% since February. During the same timeframe, those favouring arrangements through multiple providers has fallen by six percentage points to 20%. Meanwhile, those opting for ‘accommodation only’ has declined to 2%.
The principal motivations behind selecting a package holiday have remained consistent, with value (36%) and ease (36%) being the key factors, though the advantage of ‘added security with one provider, ATOL/ABTA protection’ has grown by four percentage points since February to 26%, the poll said.
This safeguarding ensures that customers are protected should any alterations occur to their reservations, including the possibility of obtaining refunds if their travel arrangements are cancelled, and that those getaways are maintained to the highest standards regarding customer service, booking modifications, and health and safety.
Jet2 has stated it will not implement surcharges on any confirmed flights or holidays to offset cost increases, such as aviation fuel, guaranteeing customers that the rate they reserve with Jet2 is the rate they will ultimately pay.
Steve Heapy, Chief Executive of Jet2, commented: “Consumers want assurance during times of uncertainty and package holidays provide that assurance. On top of all the protection that our package holidays guarantee, Jet2 is well known as being a consumer champion that goes above and beyond to look after customers. Ahead of a busy summer season, this means new and existing customers know that their well-deserved holidays are in the very best hands with us, and we are very excited about welcoming everyone onboard and taking them on their breaks.”
