The Commission for Aviation Regulation licenses travel agents and tour operators in Ireland. All tour operators and travel agents are required by law to enter into a bond before they are licensed and some have had difficulty getting bonds in the last few months. This bond protects the consumer and means that if the travel agent or tour operator becomes bankrupt or goes into liquidation then the Commission administers the bond. This involves the Commission assessing claims, making refunds and where necessary, arranging for those away to be brought home.The Commission for Aviation Regulation website (www.aviationreg.ie) has a list of all licensed travel agents and tour operators. A similar scheme, (ATOL) is run in UK by the Civil Aviation Authority.

Check that your holiday comes within the definition of a package holiday as flights alone even if booked through a travel agent will not qualify.Under consumer legislation in Ireland, a package holiday is a holiday that consists of at least two of the following three items:

• Travel
  Accommodation 
  A tourist service or activity that makes up a significant part of the cost and package and is organised by the package organisers. Examples of this activity or service including golf, tennis, cooking courses etc.

The package must be pre-arranged and sold at an inclusive price. Say for example you book a flight on a budget airline's website and just after that book your accommodation from a link on that website this will fall outside a package holiday as defined.

There is no similar scheme licensing scheme for airlines in Ireland. If you book directly with an airline in Ireland therefore or book a flight only with a travel agent you are not entitled to a refund/do not have bonded protection unless you can rely on some other route. The best thing to do then is to book only with well known airlines and do your research.

The UK ATOL scheme, protects you if you book a flight only with a travel agent / tour operator and it is high time this was introduced here. It is being reviewed at the moment so hopefully there will be quick and decisive action.

You can also look at whether you have protection if you book with your credit card. Under the UK Consumer Credit Act, the credit card company is jointly liable and you can claim a refund from your credit card provider in the UK. Here in Ireland the situation is less clear and it may well depend on your credit card provider so do check out their policy and if you are not happy with it do shop around.

Last but not least check if your travel insurance covers scheduled airline failure or any other losses not recoverable form another source. Again shop around if you are not happy or change to one that does when you next renew.