What is end supplier failure?

When booking a holiday, the last thing on your mind is the possibility that your airline, hotel, or cruise company could collapse. Unfortunately, it happens, and when it does, the result can be both stressful and expensive. This is where end supplier failure comes into play. In this post, we’ll explain what it means and what your rights are under UK law if your end supplier goes bust.

What is end supplier failure?

End supplier failure refers to the insolvency or financial collapse of a travel service provider - such as an airline, hotel, ferry operator, car hire company, or cruise line - that was supposed to deliver a part of your travel plans. If they cease trading, you may be left without the service you paid for.

What to do if your end supplier goes bust (UK guidance)

• Check if you booked a package holiday (ATOL Protected)

If you booked a package holiday through a UK travel company and received an ATOL certificate, you’re in luck. The ATOL scheme (run by the Civil Aviation Authority) protects you if the travel company or one of its suppliers goes bust.

  • Before travel? You should get a refund.
  • Already abroad? ATOL will arrange for you to return home.

ATOL only applies to air travel packages sold in the UK.

• Did you pay by credit card?

Under Section 75 of the Consumer Credit Act 1974, if you paid £100–£30,000 using a UK credit card, the card provider is jointly liable for the failure of the supplier - even if you booked through an intermediary.

You can claim a full refund from your card issuer if the service isn’t provided due to insolvency.

•  Look for ABTA Protection

If you booked land- or sea-based travel (e.g., coach tours, cruises, rail), and the company is an ABTA member, you may be entitled to refunds or alternative arrangements under their protection scheme.

ABTA does not cover flight-only bookings.

• Contact the insolvency practitioner

In cases where ATOL, ABTA, or the consumer credit act doesn’t apply, you can contact the administrator or liquidator handling the collapsed supplier’s insolvency. They may be organising limited refunds or arrangements.

What if you’re already abroad?

If your end supplier fails while you're away:

  • Reach out to ATOL or ABTA if applicable.
  • Contact the UK consulate or embassy if you're stranded with no support.

Useful Resources: