Travel experts are often strongly advising that holidaymakers book with travel agents or tour operators which have the ATOL or ABTA accreditation. Most holidaymakers are aware that the ATOL or ABTA letters are something which they should look for when booking online, but most are completely aware of what the letters mean, and what protection they will have in the event of something going wrong with their holidays.
ATOL
ATOL stands for Air Travel Organisers’ Licence. It is, in essence, an insurance scheme run by the Civil Aviation Authority (CAA). Big tour operator companies such as Thomson, Thomas Cook or Kuoni pay a sum equivalent to a set percentage of their turnover into a safeguarded account. In return, ATOL promise than in the event that the tour operator goes into liquidation, this money will be used to get people home from their holidays overseas. People who have paid in full for their holiday and are yet to travel, can also get a refund of anything they have paid. It is important to remember that ATOL only covers package holidays. If you book flights, accommodation or car hire independently online, you will not be covered should your airline or hotel run into financial difficulties.
ABTA
ABTA is the Association of British Travel Agents and booking with an ABTA registered agent offers similar protection to the ATOL scheme. ABTA goes further though and covers not only holidays by air, but also coach tours, cruises and other types of holidays in the UK. ABTA also demands that its members adhere to a code of conduct and if customers experience problems which cannot be resolved by their travel agent, they can ultimately refer to ABTA.
Recent Collapses
The ATOL/ABTA bonding was brought into sharp focus when the internet retailer Low Cost Holidays suddenly went into liquidation in July 2016. Although trading in the UK and selling to British customers, this travel agent was based in Spain. As ATOL and ABTA are a British government and UK travel industry scheme, any companies which have their registered office outside the UK cannot be members. Purchasers should be fully aware of what they are getting into when booking with one of these internet suppliers – costs may be lower than booking with the established travel agents, but are you prepared to foot the bill for a cancelled holiday if something goes wrong?
What ATOL and ABTA Won’t Cover
ATOL and ABTA are insurance policies against the insolvency of the tour operators only. They are in no way a substitute for other types of holiday insurance and won’t cover you if you need to cancel your holiday because of illness in the family, or if you fall ill when overseas. It is therefore essential to have EHIC cover for medical costs as a bare minimum when travelling within Europe, and comprehensive travel and medical cover to meet the costs of getting you home in an emergency or other incidents such as theft or loss of passports.