If Greece leaves the Euro, is my holiday booking safe?

January is typically the time of the year when we think about booking our summer holidays abroad. However with the crisis in the Euro many families may be reluctant to book their annual holiday to Spain, Portugal and particularly Greece this year. They may be concerned  that if the Euro collapses or one of the countries leaves the Euro, they may be left stranded abroad.

So I asked ABTA (The UK Travel Association), if I booked a holiday in Greece, how would I stand if Greece left the Euro? Would my hotel booking and flight still be valid or would I have to pay again in whatever local currency they decided to adopt? Would ABTA cover me? This was their reply:

Dear Mr Buxton
Thank you for your recent enquiry.
Please be advised that regardless of Greece leaving the Euro, your contract would be with the tour operator who would honour your booking in line with their terms and conditions.
We are confident that the company who you are booking with will be able to assure you should you approach them on the matter.
Yours sincerely


Consumer Affairs Team
ABTA - The Travel Association
E: consumer.affairs@abta.co.uk
T: 0901 201 5050*
F: 020 3117 0581
www.abta.com

But what if you booked your accommodation and flight separately and didn't go through a travel company? Would you still be able get home? So I asked ATOL ( the UK financial protection scheme managed by the Civil Aviation Authority (“CAA”)), I asked if Greece leaves the Euro, Would my flight still be valid or would I have to pay again to get home in whatever local currency they decide to adopt? Would ATOL cover me?

Dear Mr Buxton

Further to your email below, providing that you are contracted with an ATOL holder then that ATOL holder will be responsible for your flight booking, irrespective of currency issues.  If the ATOL holder ceases to trade, your payments to them in respect of your flight contract will be protected by the ATOL system.  You can access further information about the ATOL system via the following link: http://www.caa.co.uk/default.aspx?catid=1080&pagetype=90

Regards,


Mark Hydes
Team Manager, ATOL New Applicants & Enforcement
Consumer Protection Group
Civil Aviation Authority
K3, CAA House, 45-59 Kingsway, London, WC2B 6TE
Tel. 020 7453 6460
Fax 020 7453 6492
mark.hydes@caa.co.uk   

So given their responses, it appears that the British annual holiday to the Med'  is still safe. However I'd be interested to hear your thoughts? Would you holiday in Europe this year?