Don't get caught with unlicensed on-line travel agents

The on-line hotel booking company 1800hotels.ie filed for bankruptcy a few days ago.

This has left many holiday makers high and dry: they've paid for their hotel through this company, but they arrive at their destination to be told that the booking has been cancelled. Left with little option, people have to pay a second time for their hotel room. Now, instead of paying €600 for your room for the week, you end up paying €1,200 (or more, if your hotel reception says that €600 was a discounted internet offer and the real price is actually higher).

Hopefully, all those in this situation with 1800hotels will get their money back through their credit card companies.

This unfortunate episode really highlights the danger of using unlicensed, unbonded on-line travel agents. Before anyone resolves to never again book holidays on the internet, remember that lots of established "real-world" travel companies have on-line outlets. These will be bonded (meaning that they have deposited 'fail-safe' cash with the appropriate Government licensing body, so that if they go bust while you're abroad then there's still money there to get you back and cover your expenses).

But, how can you tell which are the unbonded "virtual" travel agents that could cause you a load of heartache if they go bust. Well, all reputable travel companies should have the license/bonded symbol on their site (usually their 'Homepage' or on their 'About Us' page). See the end of the Budget Travel website for an example of what to look out for. The letters ITAA (Irish Travel Agents Association) or ABTA (The Travel Association) should also be on the page someplace. See the bottom of the First Choice website for another example.

If you're in any doubt, contact the website company directly and ask them if they're licensed and bonded. If you don't get a reply or you're still unsure, then don't book - is it really worth the hassle of worrying about paying for your room twice just to save a few quid?