By law, every UK travel company which sells air holidays and flights is required to hold an ATOL, which stands for Air Travel Organiser’s Licence. If a travel company with an ATOL ceases trading, the ATOL scheme protects customers who had booked holidays with the firm. It ensures they do not get stranded abroad or lose money. The scheme is designed to reassure consumers that their money is safe, and will provide assistance in the event of a travel company failure.
ATOL was first introduced in 1973, as the popularity of overseas holidays grew. After a number of travel company failures left people stranded, the UK Government realised consumers required protection should firms in the unregulated travel sector fall into difficulties.
The scheme was designed to cover charter flights and package holidays, and functioned well for years. However, the holiday market has changed considerably and a rise in online booking means many people now book the components of their holidays separately.
As a result, changes were made to the ATOL scheme in April 2012. It now covers all overseas air holidays where a flight and accommodation have been booked together. It also covers some flights booked separately, and applies in some other circumstances too.
Most overseas air holidays booked with UK travel companies must be protected. There are several ways to check:
- Look before you book. Check for the ATOL logo on travel company websites, brochures and advertisements. If you are not sure, ask your travel company or agent to tell you about ATOL protection.
- Use our Check an ATOL facility. This allows you to check that the travel company you are booking with is part of ATOL.
- Make sure you are given an ATOL Certificate. The law says you should be given a certificate to show you are covered as soon as you have booked and paid any money towards a holiday or flight.
It is important that you book your holidays with a reputable travel company. If you book with a company that is not a member of ATOL then you will not be covered by ATOL protection.
ATOL is run by the Civil Aviation Authority (CAA). It is funded by contributions from the travel companies, who must pay £2.50 into the scheme for each person they book on a holiday.
This money creates a fund that is used by the CAA to ensure consumers either complete their holiday or – if they cannot get away – receive a full refund.