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Super Break and Late Rooms collapse hours after urging customers to book – what are your rights?

Super Break and Late Rooms enter administration  - REX
Super Break and Late Rooms enter administration - REX

Holiday firms Super Break and Late Rooms have gone into administration, despite urging customers to purchase trips and book hotel rooms just three hours beforehand.

The move affects 20,000 bookings made through Super Break, according to administrators KPMG, with 400 people already on holiday. Late Rooms had around 23,000 bookings.

The number of individual holidaymakers caught up in the collapse is believed to much higher – the Association of British Travel Agents (Abta) believes 53,000 are affected by Super Break alone, with no estimates for Late Rooms.

The firms’ parent company, Malvern Group, stopped trading on August 1 after running into financial trouble and failing to find a buyer.

Super Break and Late Rooms were still encouraging customers to buy holidays and accommodation hours before the announcement through Twitter and their own websites.

Martyn James, of consumer champions Resolver, said: "It is standard practice, unfortunately, for firms to market their holidays right up until the point that they pack in. They still operate under the illusion, or delusion, that everything is going to be alright."

All holidays booked through Super Break have been cancelled, and those currently on trips may have to pay again before getting any cash back.

Customers will be able to get their money back for booked trips with Super Break, but not for any gift vouchers or tickets to visit attractions. A Super Break statement said these customers should contact their debit or credit card firm, who may be able to issue refunds.

Bookings taken out through Late Rooms are safe, as the firm just books accommodation, not entire holidays, and does not hold customers’ money. A Late Rooms statement said: “We anticipate that your reservation is secure and your payment will be taken by the accommodation supplier either in advance (for non-refundable reservations) or at the property”.

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Customers’ bookings involving flights will be protected by the Air Travel Organiser’s Licence (Atol). Those involving other forms of travel such as trains, cars and ships are covered by Abta.

The Atol protection scheme protects holidaymakers booking flights from being stranded if their provider goes into administration. Those stuck on holiday get whatever help they need to enjoy their trip then return home. Travellers with trips booked get a refund or a replacement holiday.

Abta is a similar promise of compensation or alternative holidays to any non-flying trips bought through firms that sign up to the scheme.

Further disruption to flights could stem from a dispute between British Airways bosses and staff, who are today voting on strike action over pay.