Frequently Asked Questions

ATOL (Air Travel Organiser's Licence) is a UK government-run scheme that provides protection for consumers booking package holidays which include flights and some flight only sales. It ensures that if a tour operator fails, customers' holidays and flights will still go ahead as planned or they will receive a full refund. ATOL protects package holidays that include flights and are sold in the UK. It also covers some flight-only bookings made in the UK with a UK tour operator. To be ATOL protected, holidays must be purchased from an ATOL holder, identified by an ATOL certificate. ATOL offers peace of mind to holidaymakers, ensuring they won't be stranded abroad or lose money in the event of a tour operator failure.

 ABTA is a trade association for the travel industry in the UK. It represents over 1,200 travel companies including tour operators and travel agents. ABTA offers a range of services to its members but one of its key consumer protection initiatives is the ABTA Bond, which provides financial protection for consumers in the event of a member company's failure. Whereas ATOL protects packages which include flights, ABTA protects packages which do not include flights and also protects some accommodation only sales. ABTA also sets high standards for its members and provides guidance on ethical and operational best practices. ABTA membership is widely seen as a sign of quality and credibility in the travel industry and provides reassurance to consumers booking holidays.

IATA (International Air Transport Association) is a trade association for the world's airlines, representing over 290 airlines from around the globe. It was founded in 1945 and is headquartered in Montreal, Canada. IATA's main objectives are to promote safe, secure, efficient and economically sustainable air transport, and to serve and represent the airline industry. The IATA accreditation program (IATA Accreditation) is a scheme set up to allow travel agents to issue tickets on behalf of the airlines and for airlines to collect payments from the agents.

ABTOT (Association of Bonded Travel Organisers Trust) is an established UK travel trade association, specifically designed to offer financial protection for travel organizers and their customers. Established to provide a suitable and cost-effective bonding solution for tour operators, ABTOT focuses on safeguarding consumers' prepayments for non-flight inclusive package holidays.

Key features of ABTOT include:

• Financial Protection: ABTOT ensures that in the event of a member company’s financial failure, customers’ prepayments are protected. This means if a tour operator goes out of business, customers are either refunded or, if they are already on holiday, can complete their trip and return home as planned.
• Specialization in Non-Flight Packages: While ATOL covers holidays including flights, ABTOT specializes in protecting non-flight inclusive packages. This includes a variety of travel arrangements such as coach tours, rail tours, cruise holidays, and accommodation-only bookings.
• Membership Standards: ABTOT members are required to adhere to a strict set of standards ensuring reliability and quality service. This includes maintaining accurate and transparent financial records and providing clear information to consumers about their rights and protection under ABTOT.
• Consumer Confidence: By booking with an ABTOT member, consumers can have peace of mind knowing that their prepayments are secure. This enhances consumer confidence, especially when booking bespoke or specialized holidays that do not include flights.
• Regulatory Compliance: ABTOT also helps its members to comply with the Package Travel and Linked Travel Arrangements Regulations 2018, ensuring a high level of consumer protection and legal compliance in the travel industry.

In summary, ABTOT plays a crucial role in the UK travel industry by providing financial protection specifically for non-flight inclusive holiday packages, thereby enhancing consumer confidence and ensuring regulatory compliance among its member travel organizations.

The Package Travel and Linked Travel Arrangements Regulations 2018 is a set of UK regulations that provides legal protection for consumers who book a package holiday. The regulations were introduced in July 2018 and aim to protect consumers who book package holidays that include flights, accommodation, and other travel services. The main provisions of the Regulations include: 

1. Financial protection for consumers in the event of the tour operator's insolvency.
2. Clear and comprehensive information about the holiday, including the itinerary, prices, and any restrictions.
3. Protection against unreasonable price increases.
4. Clear information about the cancellation and amendment rights of the consumers.
5. A requirement for tour operators to provide assistance in the event of a problem with the holiday.
6. The right to compensation for damage caused by the holiday.
7. A requirement for tour operators to have adequate insurance in place to cover their obligations under the regulations.

Overall, the Package Travel Regulations are designed to protect the rights of consumers who book package holidays and ensure that they receive a safe, secure, and enjoyable holiday experience.

Over the past few years we have seen a number of travel businesses start to operate a trust account but it is not mandatory.

The Regulations state you must offer financial protection if you are selling packages but this can be in the form of a

• Trust Account
• Bond, or 
• Financial Failure Insurance