Martin Lewis has issued a stark warning to anyone who has already booked a summer holiday, explaining why booking flights and hotels separately could be a costly mistake. The money-saving guru urged those who have paid for trips with major holiday firms and airlines, including TUI, Jet2, Ryanair, Wizz, easyJet, and British Airways, to pay close attention.
Jet Fuel Shortages Threaten Travel Plans
Goldman Sachs recently suggested that the UK could be worst hit by jet fuel shortages due to critically low levels of supplies and poor refining tools. In a research note, the investment bank stated: “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.”
Package Holidays Offer Greater Protection
During his Money Show Live on ITV, Lewis responded to an audience member who asked whether they would receive a refund if their flight was cancelled due to a lack of jet fuel. Lewis explained that holidaymakers who booked accommodation independently from flights would lose their hotel costs, as they would not be protected under consumer regulations.
He said: “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.”
He added: “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 reason, he explained, is that the hotel reservation remains valid: “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.”
Credit Card and Insurance Limitations
If the accommodation provider hasn’t violated any terms, guests might examine how they paid for their booking, but that route offers no solution. Lewis said: “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 those still seeking a solution, travel insurance may seem like the next logical step. Lewis revealed: “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.”
He advised: “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.”
Importance of Early Travel Insurance
Speaking on his ITV programme, Lewis also cautioned that neglecting to take out insurance immediately after booking could leave holidaymakers with nothing if their plans fall through. With ongoing turmoil in the Middle East sparking serious worries over jet fuel supplies, Lewis warned that those who book a holiday and put off arranging insurance could risk losing everything.
Lewis emphasised that travel insurance ought to be bought the instant a holiday is booked: “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 in 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 named 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.”
Group Travel Considerations
Lewis also commented on the complexities facing larger groups: “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 and you can’t all go on the trip, it’s only the person 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.”
Shift Towards Package Holidays
Jet2 today reported that the number of people choosing a package holiday as their preferred method of booking has risen by 5% to 51% since February. In the same period, the number of people preferring to book through different providers has dropped by six percentage points to 20%, while those choosing ‘accommodation only’ has dropped to 2%. The primary reasons for choosing a package holiday remain steady, with value (36%) and ease (36%) as the main drivers. However, the benefit of ‘added security with one provider, ATOL/ABTA protection’ has increased by four percentage points since February to 26%, according to the poll.
This protection means that customers are covered should any changes happen to their bookings, including the option of receiving refunds if their travel plans are cancelled, and that those holidays are held to the highest standards when it comes to customer service, changes to bookings, and health and safety.
Jet2 has confirmed it will not introduce surcharges on any booked flights or holidays to cover cost increases, such as jet fuel, assuring customers that the price they book with Jet2 is the price they will pay.
Steve Heapy, CEO of Jet2, said: “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.”
