Wondering what ATOL protection is and how it can help protect you from losing money if your travel company goes out of business? Here's everything you need to know
With so much of travel disruption going on right now, we understand that security when booking your holiday is paramount to actually being able to enjoy it. Worrying about losing money, or having to cancel your trip, because your airline goes bust or your travel company fails is the last thing you want.
Chances are you've heard of ATOL protection, but you might not know what it is, or why it could be the answer to alleviating some of your worries. Here's everything you need to know.
ATOL protection at a glance
What is ATOL protection?
ATOL protection (Air Travel Organiser’s Licence) is a UK financial scheme operated by the UK Civil Aviation Authority (CAA) which provides financial protection should the travel company you booked your holiday with become insolvent or bankrupt during (or before) your trip. It was designed for package holiday and charter holiday providers, not individual airlines, so only applies to holiday bookings which include flights.
This means that if you're on holiday and your travel company - such as British Airways or TUI - goes out of business, ATOL will ensure you can finish up your trip as planned, covering any necessary accommodation and replacement flights as needed. In short: you won't be left stranded abroad, or lose any money because of the business' failure.
The good news is that by law, every UK travel company that sells package holidays which include flights is required to be an ATOL holder, so you should always receive an ATOL certificate at the point of booking.
What isn't covered by ATOL protection?
It's important to understand that ATOL protection isn't travel insurance, it's a scheme to protect travellers against financial loss if the company they're travelling with goes out of business. Therefore, ATOL protection does not include:
Flight delays or cancellations. Check our comprehensive guide to find out what to do if your flight is cancelled or delayed - generally, you'll need to claim on travel insurance to cover such eventualities. Take a look at our easy guide to travel insurance to find out what coverage is best for you
Similarly, medical emergencies, lost luggage and accommodation issues are not ATOL protected, and you'll need travel insurance to protect against financial loss caused by such disruptions
ATOL only covers package holidays which include a flight, so if you've used a travel company to only book accommodation, or you're using other transport such as a coach, or are hiring a car, you won't be protected. However, they might be covered by other schemes such as ABTA and AITO. As ever, check before booking
Only deals are covered by ATO. You'll only be protected if the agent you booked through is an ATOL holder and you receive an official ATOL certificate upon payment.
How do I know if my trip is ATOL protected?
If you receive an ATOL protection certificate at the point of booking, it's protected. If your travel provider doesn't mention ATOL during your booking discussions, ask them about it before you pay, as you may choose to book with someone else if it's not.
All UK travel companies selling flights as part of their own holiday packages are required by law to hold ATOL protection, so if you don't receive a certificate with your booking, they may have simply forgotten to attach it, so follow up and request it.
However, companies working as agents for airlines or hotels, which aren't selling packages they themselves have created, are not necessarily required to be ATOL protected, so always check at the point of booking if it's included. Generally:
if a travel company has created a holiday package, i.e. 7 night trip to the Canary Islands including flights and car hire, they should have ATOL protection
if a travel company is merely booking flights on your behalf, they do not need to be an ATOL holder. If they advertise as 'agent only', they likely won't include it
Steps to check if your trip has ATOL protection
All UK travel companies must display their ATOL logo and unique ATOL number either on their website or in their shop window, so keep an eye out for it. You can also check their ATOL number on their search page to see if it's still valid.
Ask the travel company representative at the time of booking whether or not your holiday is ATOL protected, and if there are any parts of it which aren't.
Let's take a look at some booking scenarios to determine when your holiday may be ATOL protected:
Holiday booking type | ATOL protected? |
|---|---|
Package holiday which includes flights booked through a travel company | YES |
Package holiday without flights booked through a travel company | NO - if flights aren't part of your booking, you won't be ATOL protected |
Flight-only booking made through a travel company | MAYBE - it depends if the company is operating solely as an agent for the airline or whether it's an ATOL holder. Check at the point of booking |
Flight-only booking made directly with an airline | NO |
Flight and hotel bookings made separately, by you, directly with the provider | NO |
A holiday booked through a non-UK travel company | NO - ATOL is a UK-only scheme |
You book a hotel after buying flights yourself, not through a travel company | NO - these are separate contracts and will not count |
Print out your ATOL protection certificate as soon as you receive it and keep it handy throughout your holiday
How does ATOL protection work?
Usually, if you're on holiday and your travel provider goes out of business, you'll be contacted via text message or email to let you know. ATOL or the CAA should handle rebooking your flights and sorting continued accommodation as necessary, so in an ideal world, you won't have to stump up any cash to get you home. Their job is to protect you in real time, so you aren't out of pocket.
However, if you hear of your company going out of business, always refer first to your ATOL certificate, which will outline the procedures to follow and include an emergency phone number to call to find out what's happening.
Obviously things don't always run smoothly, so in some cases, you may have to pay some expenses up front to claim back later, which you can do on the ATOL website.
How do I make a claim with ATOL?
Firstly, check your ATOL certificate and follow the procedures outlined there.
It will likely involve filling out a form online or calling your tour operator. If you do file a claim:
you must do so within 12 months of the company failing (check the ATOL failures page to see the exact date of failure)
be prepared to wait up to 5 days for acknowledgement of the claim, and 28 days for assessment (not to receive the refund, but to hear back as to whether your claim is valid)
Things to remember:
ATOL is not travel insurance. You cannot use it to claim for general flight cancellations or delays
ATOL only covers your travel costs in the event the travel supplier has gone out of business
Not all travel agents have ATOL protection, so check at the point of booking whether or not it's included for your trip
