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Travel & living abroad

Financial protection for holidays

If your travel provider goes bankrupt when you’re abroad on holiday you need to know you won’t get stranded without a refund. Fortunately there are several associations that exist to help protect and support you – we’ve explained how below. 

Book your holiday through a reputable travel company

Decent travel agents and tour operators will give you security by holding:

  • an Air Travel Organisers Licence (ATOL)
  • membership with an approved body such as ABTA; the Association of Bonded Travel Organisers Trust (ABTOT); the Association of Independent Tour Operators (AITO); Bonded Coach Holidays (BCH); or the Federation of Tour Operators (FTO)
  • a suitable insurance policy
  • consumer pre-payments in a trust account such as a Travel Trust Association account.

Many of the travel arrangements provided by these kinds of companies are protected in case of the financial failure of the travel company. You should, however, always ask your travel company if protection applies to your travel arrangements. If it doesn’t, the company may be able to offer suitable insurance to cover you.

Air Travel Organiser's Licensing

What is ATOL?

ATOL is a protection scheme for flights and air holidays, managed by the Civil Aviation Authority (CAA).

ATOL is the only scheme for flights and air holidays sold by tour operators in the UK.

How does ATOL protect you?

The scheme protects you from losing money or being stranded abroad when a tour operator goes out of business.

All licensed firms have to lodge bonds with the CAA. The CAA gives refunds and arranges for people to finish their holidays and fly home.

A Government-backed fund, the Air Travel Trust, steps in if any ATOL bond isn't enough to look after everyone affected.

How can I get ATOL protection?

ATOL protection is included in the price of a holiday booked with an ATOL holder.

The ATOL holder or their agent must give you an ATOL receipt once you pay any money (even a deposit) for a flight or a package holiday by air.

The receipt includes the name of the licensed firm you've booked with and their ATOL number.

The ATOL holder must honour your booking even if their agent goes out of business. And if the ATOL holder itself goes out of business, you'll be protected by ATOL.

But you will NOT be ATOL protected if you:

  • only buy a scheduled flight and receive a ticket within 24 hours of payment 
  • book direct with an airline.

The ATOL website has more info about the scheme and a list of firms with a licence.

ABTA -  The Travel Association

What is ABTA?

ABTA represents over 5,500 travel agencies and 900 tour operations, throughout the British Isles. It maintains a Code of Conduct which aims to ensure that the public receive the best possible service from Members, and to maintain and enhance the reputation, good name and standing of ABTA and its Members.

What protection does ABTA give you?

Many of the travel arrangements provided by ABTA Members are protected in case of the financial failure of the travel company. You should, however, always ask your travel company if protection applies to your travel arrangements.  Where travel arrangements aren’t already protected, your travel company may be able to offer suitable insurance to cover you.

To take full advantage of the protection available under any financial protection scheme or the ABTA Code of Conduct, it’s important that you have the correct documentation when making your booking.  See the financial protection page of ABTA’s website.

AITO - Association of Independent Tour Operators

What is AITO?

AITO is an association of around 140 independent specialist tour operators. Each member of AITO must adhere to both a Code of Business Practice and a strict code of conduct known as the Quality Charter.

What protection does AITO give you?

Holidays with AITO tour operators have 100% consumer financial protection. AITO ensures that  all holidays – including accommodation only - its members operate are protected either through its own government approved bonding scheme (AITO Trust) or through other schemes such as ATOL or ABTA.  This means that in the event of an AITO tour operator failing, any money paid in advance to the member for a holiday will be refunded or if you are on holiday at the time of the failure you may complete the holiday.

For further details see the financial protection page of the AITO website.

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