ATOL protection

What is ATOL and what does it do for me?

ATOL is a financial protection scheme managed by the Civil Aviation Authority (CAA).

All holiday companies selling air holiday packages and flights in the UK are required by law to hold a licence called an Air Travel Organiser’s Licence (ATOL). This is granted after the company has met the CAA’s licensing requirements.

Each ATOL holder is issued with a unique ATOL number, which can be checked on the ATOL website, and must contribute to a protection fund called the Air Travel Trust (ATT). Some ATOL holders must also provide a bond to the ATT.

In the event of an ATOL holder’s failure, the ATOL Scheme ensures customers who booked and contracted with the ATOL holder for an air holiday package or a flight, do not lose the money paid or are not stranded abroad.

How can I tell if a flight or air holiday package should be ATOL Protected?

If you pay any money - even a deposit - to a holiday company in the UK for a flight or an air holiday package, the sale usually has to be ATOL protected. The holiday company you’re booking with must either hold an ATOL or be an agent of a company that does (in which case it must tell you when you book which ATOL you’re protected by), and as soon as you pay any money, issue an ATOL receipt to you.

If you're just buying a scheduled airline ticket from a travel agent and you get your ticket or airline confirmation straight after you’ve paid, you won't usually be covered by ATOL.

ATOL also doesn’t apply if you book direct with an airline.

How can check whether I’m covered if I book through a travel agent?

You should ask your travel agent to confirm that the whole holiday you’re booking with them is ATOL protected, and that you will receive a full refund or be brought home if the holiday company fails.

If you are told that everything is ATOL protected, make sure you receive an ATOL receipt that confirms all your holiday arrangements, the total cost, the name of the ATOL holder and their ATOL number. You should also receive the ATOL holder’s confirmation invoice soon afterwards.

These documents will ensure you are protected if your holiday company fails. You should keep them safe and take them on holiday with you in case you need to claim.

Am I covered if I book on the Internet?

ATOL holders must register their trading names and web addresses with the CAA so you can check these before you book.

Most ATOL holders have websites and many provide an on-line booking facility that allows you to buy an 'off the shelf' holiday package, build a holiday package from a range of travel and holiday accommodation options, or book a flight.

When you’re about to book you should be given information about your ATOL protection, and when you’ve booked you should receive an ATOL confirmation invoice (by email or post), which includes all the arrangements you’re purchasing, the price you’re paying and information about your ATOL protection.

If you’re booking an air holiday package on-line with a travel agent, the agent must tell you which ATOL holder you are going to be booked with, their ATOL number and issue an ATOL receipt once you’ve made payment. This should include all the arrangements you’re purchasing, the price you’re paying and your ATOL protection. The ATOL holder’s ATOL confirmation invoice should also be sent to you.

If you’re unsure whether arrangements are ATOL protected, check with the travel agent first.

Can ATOL protect holidays you build yourself?

Many websites will offer a “flights + hotel + car hire” booking facility, which allows you to build a holiday package from a range of travel and other holiday options.

If you build a complete holiday package and have a contract for the package with an ATOL holder, you should be protected. Check for the holiday company’s ATOL and make sure you get an ATOL confirmation invoice that covers all the items you've booked and paid for.

You should also benefit from the rights provided under the Package Travel Regulations because the holiday company you’ve booked through is responsible for each component of the holiday. If there's a problem with one of them – whether before you go or when you're away – the tour operator must sort things out and provide you with assistance.

There are many ATOL tour operators that let you build value for money and flexible holidays that are protected. Look for the ATOL logo and check for information that confirms all your arrangements are covered. This will usually be shown on websites before you book, or be explained to you when you book over the phone or in a travel shop.

I am thinking of putting together my own holiday – what cover will I have?

Many holidaymakers plan holidays where different parts of the trip are booked through different suppliers such as airlines and hotels. If elements of a trip are booked separately in this way, these holidays are not protected in the way a package bought from a single holiday company would be under ATOL.

Booking on-line with separate suppliers may save you money. However, if an airline was to stop flying, you might pay considerably more to get another flight home and might even have to cut short your holiday. If you've not yet travelled and an airline stops flying, you could have difficulties getting to the accommodation you've already paid for, and last minute alternative flights could be more expensive and may operate on different days and times to the ones you originally booked.

If you pay by a credit card you should be covered under Section 75 of the Consumer Credit Act 1974. You have to have paid more than £100 and you won't be covered for any indirect loss as a consequence of bankruptcy of a provider. So again, while you may be able to recover the costs paid to the failed provider other elements and still available for use, may not be covered.

If you want the flexibility building your own holiday will give you but want the protection of ATOL, it is possible to find ATOL tour operator websites that offer flights plus hotel booking facilities. This allows you to build a holiday from a range of holiday and travel options and provided your contract is with the ATOL tour operator, you should have full protection.

Doing this should also mean you benefit from the rights provided under the Package Travel Regulations because the ATOL tour operator is responsible for each component of the holiday you’ve bought.

Am I covered by ATOL if I book a flight or holiday direct with an airline?

If you book just a flight direct with an airline, you won’t be ATOL protected.
Airlines may also offer hotels and car hire that can be bought at the same time. These may be offered in different ways.

Some airlines will provide links to other websites operated by different companies. Buying parts of your holiday from different websites will usually mean you make separate payments, in which case it’s unlikely you’ll be fully protected.

If an airline will let you book the whole holiday package with them and take a single payment, the airline must provide financial protection under the Package Travel Regulations.

Other airlines will take you to a website operated by a holiday company with an ATOL if you want to book flights and accommodation. Check that you make a single payment to this company, and make sure you get an ATOL confirmation invoice confirming that you’re ATOL protected.

My trip is protected by ATOL, will this get me home if I'm abroad and my holiday company goes bust?

If you have ATOL protection you will usually be able to complete your holiday and fly back to the UK at the end of your stay. The Civil Aviation Authority will check accommodation and flight providers to the failed company to ensure these can still be used and where necessary will make alternative arrangements.

If your holiday includes scheduled airline tickets that have been issued, it will usually still be possible to use these; however you should check before you go to the airport.

Should I take any documents with me to confirm my holiday is protected by ATOL?

Yes, you should take the ATOL confirmation invoice you will have received from the ATOL holder. This confirms you are entitled to ATOL protection if your tour operator fails.

If you book your trip through a travel agent you should make sure the agent sends you the ATOL confirmation invoice before you’re due to travel. As a minimum you should have an ATOL receipt from the agent giving the ATOL holder’s details and what you have booked with them.

Will I still be able to go away if the ATOL holder goes bust before I’m due to go?

If you have an air holiday package, this is likely to get cancelled and you’ll be given a refund.

If you’ve only booked a scheduled flight, you should check with the airline to see if you are still able to travel.

If your holiday has to be cancelled, some travel agents may try to organise another one for you without it costing any more than the difference between the original and new holiday prices (if applicable). You may be asked to fill in a form to allow the travel agent to claim your refund back from the Civil Aviation Authority (CAA.)

Does ABTA provide the same protection as ATOL?

No. ABTA is a travel trade association. One of the conditions of membership is that a bond is held for non-air holidays. Members of ABTA must also adhere to a code of conduct covering standards of service and complaints.

ATOL is a legal requirement for holiday companies selling flights and air holiday packages – these companies have to provide this protection.

If an airline fails and I’m booked with an ATOL holder, how am I covered?

When a holiday company sells a package under its ATOL it is contractually responsible for the travel and holiday arrangements it makes for its customers. If the airline providing the flights fails, the company should make alternative arrangements so that its customers can continue to travel on their holiday or fly home.

If you book just a scheduled flight with an ATOL holder, airline failure insurance may be offered instead to cover alternative arrangements.

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