ATOL protection is a term which is often used when comes up when travel companies go bust or when booking a holiday.
But what does it actually mean, and why is it so important? We explain what it protects and why you need it when looking at your next package holiday.
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What does an ATOL protected holiday mean?
By law, every UK travel company which sells package 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 scheme protects customers who had booked holidays with the firm – making sure they don’t get stranded abroad or end up out of pocket.
It’s designed to reassure consumers that their money is safe, and it helps customers if their travel agent goes bust – such as All Leisure Holidays ltd.
ATOL protection doesn’t apply if you buy your flights directly from your airline.
And flight-only arrangements bought through a travel agent are not always protected under the scheme – so make sure you always ask.
After the airline Monarch collapsed those who booked a package holiday were ATOL protected.
Primera Air is a Danish-registered airline and is not part of the Civil Aviation Authority’s ATOL Protection scheme, which covers only passengers booked on package holidays.
After it collapsed on Monday, October 1, after 14 years of operation, its stranded customers could not claim compensation because of its lack of ATOL.
Similarly, Wow Air passengers who booked flights with the Icelandic airline would not have been covered unless they booked through a package holiday.
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Does ATOL protection cover flights only?
ATOL was first introduced in 1973, as the popularity of overseas holidays grew.
After a number of travel company failures left people stranded, the Government realised consumers needed protection in case firms fell into difficulties.
If you book separate flights and accommodation from different suppliers, you might not be fully protected if things go wrong.
The scheme originally covered flights and package holidays only, but the scheme was extended in 2012 to recognise the rise of people buying holidays online.
So now, you are covered if you book a “flight plus accommodation” through the same company but from different suppliers.
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How much does ATOL protection cost and is it worth it?
ATOL protection doesn’t cost anything extra for the customer directly – it’s included in the cost of the holiday.
Travel agents must pay £2.50 for each person they book on a holiday into the scheme, which is run by the Civil Aviation Authority (CAA).
The money goes into a fund used by the CAA to make sure consumers can either complete their holiday or receive a full refund.
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How do I know if my holiday is ATOL protected?
When you book a holiday, the ATOL holder or their agent must give you a certificate confirming you are ATOL protected as soon as you hand over any money – including a deposit – for a holiday or flight.
Make sure you obtain and keep all the relevant paperwork in case you need to make a claim.
And the protection only covers British-based firms, so it’s vital to check.
When lowcostholidays went bust in 2016, customers weren’t protected by ATOL because the company had moved to Spain in 2013.
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Some travel companies display the ATOL logo on their websites even though they don’t offer financial protection.
If you booked a package holiday through Monarch, which went into administration in October 2017, you will be ATOL-protected.
However, if you booked only your flights with Monarch then it is likely you were not protected by ATOL.
To check it’s genuine, look for a number on the logo and check it out on the CAA’s website.
You should be wary if the travel provider has no ATOL number, or if the number doesn’t have four or five digits.
If you aren’t sure about the website, don’t book through it.
Another key term Brits should be aware of is ABTA, which is different to ATOL.
While ATOL protects flight-based packages, ABTA protects everything else such as cruise or self-drive trips.
