OVER 11 million holidaymakers may be running the risk of losing their money by creating their own 'tailor-made' holidays this summer.

The Civil Aviation Authority (CAA) has issued a warning to consumers that DIY holiday's consisting of separately booked flights, accommodation and car hire are not automatically ATOL-protected and may result in many holidaymakers being left out of pocket, or worse still, stranded.

Research by the CAA, which operates the ATOL financial protection scheme, has shown that although almost half (46 per cent) of DIY holidaymakers rate financial protection as 'essential', one in five incorrectly assume that their 'tailormade' holidays are as similarly protected as ATOL-protected package deals.

If any airline or provider ceases trading before the date of travel consumers may find themselves unable to claim back money already paid for an unused 'component' of their holiday, such as a car.

More seriously, if an airline went bankrupt, they could run the risk of being stranded abroad.

With one in three (33 per cent) of holidaymakers wrongly making the assumption that their travel insurance will always cover them against company insolvency, the CAA makes clear that consumers would do well to check all components of their holiday are fully and separately covered and that they have checked the small print.

Last year figures show a 21.3 per cent increase in the number of passengers taking low-cost flights and the Authority forecasts that this summer even more British holidaymakers, attracted by no-frills air fares and cheaper on-line prices, will chose the DIY option.

ATOL spokesman David Clover said: "Our research shows that although millions of holidaymakers will build DIY breaks this summer, they don't realise they are at risk. Holiday purchases are still a significant household purchase so we want consumers to make informed choices about financial protection. We must also emphasise to those building their own holidays that they may not be protected against the risks of travel company insolvency."

He continued: "Booking an entire holiday with one travel company does not mean that consumers have to compromise flexibility for protection. Many of the major on-line holiday operators allow holidaymakers to build their own tailored ATOL-protected break.

"If consumers are booking DIY holidays this summer, we urge them to take out their own financial protection measures such as buying with their credit card or taking out insurance which covers against the dangers of insolvency."

The CAA advises booking all elements of your holiday through a single ATOL-protected company which you can do by looking out for the ATOL logo on websites and in brochures or, if you are booking with a travel agent, check out brochures and ask the agent to confirm whether ATOL is protecting your complete holiday. Alternatively, check the company's details at www.atol.org.uk

However, If you do chose the DIY option then remember that booking with a credit card does not always mean full protection - you must have spent at least £100 on each element of the holiday to be covered and there is no protection for payments made via debit cards. Even if you have taken out travel insurance which covers against insolvency be sure to check the small print - many policies do not include this cover. Always remember you will only be covered for the component of your holiday that has gone bankrupt and you will not be able claim for any other element.