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Failure of Cities Direct Ltd

ATOL No: 5501
Date of failure: 07.09.2020
cities direct logo

UPDATE: We are only able to process claims made within 12 months of a business ceasing to trade. As it has now been longer than 12 months since this business failure, we are unable to accept any new claims.

ATOL financial protection is covered by the Air Travel Trust’s fund, to find out more about the Air Travel Trust’s fund please click here.

Cities Direct Ltd – ATOL 5501 has ceased trading on 07 September 2020

The company based in Cheltenham traded under the names Cities Direct, City Breaks Direct, European city breaks, Holiday Gifts Direct, Low cost city breaks, Rome Direct and website(s)

The following information applies only to ATOL protected consumers.

ATOL protected consumers are those that booked an ATOL protected flight inclusive package protected by Cities Direct Ltd.

Your ATOL Certificate will say either ‘Package Single Contract’ or ‘Package Multi-Contract’ in the bottom right hand corner.  Cities Direct Ltd ‘s ATOL number 5501 will also be shown in the box to the left of this.

Bookings which do not include a flight element are not covered by the ATOL scheme and consumers should contact

ATOL protected bookings departing after 7th September 2020

The below applies if you booked an ATOL protected flight inclusive package protected by Cities Direct Ltd.

If flight tickets have been issued these should still be valid.  If you still wish to travel, please check with the airline. If your flights are valid you have two options:

Option 1:   You can choose not to travel and make a claim (depending upon your original method of payment).  This option also applies if flight tickets have not been issued or the airline confirms that your flights are no longer valid.

Option 2: You can still use your flight, but it is likely that the other components of your package have been cancelled, so you will need to rebook these and pay the supplier(s) directly.    To avoid any issues, make sure you know the costs involved before you travel.  Please note that your ATOL claim cannot exceed the cost of your package.  If you have to book alternatives because your original travel services are not available, or exceed the cost of your package, make sure you book ‘like for like’ replacements.   You can find out more about your ATOL claim entitlements by reading Clause 1.19.11 of the ATT Payment Policy.


Think very carefully before you choose option 2 and check the cancellation terms with the suppliers particularly considering the prevailing short notice travel restrictions and/or quarantine measures.

Please note that if you choose to travel and use your valid flight, you are not protected under The Package Travel and Linked Travel Arrangements Regulations 2018 as your package travel provider has ceased to trade.  You will therefore be responsible for any risks arising from each individual element of your trip which would have previously been protected.

ATOL protected bookings that were cancelled and refund credit notes

If your ATOL booking was cancelled on or after 10th March 2020 due to Covid-19 and Cities Direct Ltd gave you an ATOL Covid-19 Voucher – they may have called it a ‘Refund Credit Note’ or provided written confirmation that you are owed a refund, you may make a claim.

Please note that we can only accept claims for cancelled ATOL protected bookings.

Travel Agents Information

If you are a travel agent of Cities Direct Ltd and you are currently holding consumer payments which you have not yet paid to Cities Direct Ltd, you are advised not to refund consumers with these funds until you have received instructions from the Air Travel Trust.  Travel agents will be individually contacted by the CAA with specific instructions for these bookings

The UK CAA has the power to prosecute offences related to its statutory functions. Person(s) who make fraudulent ATOL claims, following the failure of an ATOL holder, may be prosecuted by the UK CAA for offences under section 1 of the Fraud Act 2006. The maximum sentence for this offence is 10 years’ imprisonment.