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Holiday protection may not apply to people in the Channel Islands and the Isle of Man in future, travel agents have said.

The Civil Aviation Authority (CAA), which offers ATOL guarantees on package holidays, may remove Jersey, Guernsey, and the Isle of Man from the list.

ATOL protection covers customers in the event that if a supplier runs into financial difficulties, the holiday will go ahead as normal and, if it happens when islanders are abroad, they will be brought back home.

The CAA said it would clarify who qualified for the ATOL scheme "in due course".

Travel agent Trisha Handley-Hughes advised islanders to take out separate cancellation insurance when booking a holiday.

She said: "I think it's fair to say it has caught us out, and it's come out of the blue, which is disappointing.

"It is what it is and nothing's going to change that it's happened, so we now have to focus on dealing with it."

Travel agent Robert Mackenzie said the CAA had "suggested that the ATOL Scheme will not apply to residents of Jersey, Guernsey or the Isle of man".

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