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Is The UK Holiday Sector Showing The Strain?

The Civil Aviation Authority has confirmed what many were starting to fear, that the holiday sector in the UK is going through one of the worst periods of recent times. Figures released this week show that a total of 25 firms went under during the year up to end March 2008 but it looks as though things could get worse before they get better. So is your money safe? Will you still get your holidays if your holiday company goes under?

While all licensed holiday companies in the UK are under the ATOL (Air Travel Organisers Licensing) scheme whereby compensation and additional funding is made available to ensure customers do not lose out, it is still a worry. The Civil Aviation Authority has also confirmed that the rescue fund is now £21 million in deficit although this may be something to do with new arrangements recently instigated to safeguard customers in the event that a larger holiday company was to cease trading.

In some ways the ongoing problems with the holiday sector have been masked this year because many of the holidays for 2008 were paid for or arranged back in 2007. The next couple of years could see bookings continue to fall, something which would put even the majors under pressure.

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