What is ATOL protection?

Key takeaways

• ATOL protects your money if an ATOL-licensed travel company fails, helping with refunds, repatriation, or completing your holiday

• ATOL applies to certain flight-inclusive holidays booked with UK travel companies, but it does not cover every type of travel booking

• Always check your protection by looking for the ATOL logo with a licence number before booking, and make sure you receive an ATOL certificate once you have booked

• ATOL protection does not replace travel insurance, which covers issues such as medical emergencies, cancellations, delays, and lost belongings.

What is ATOL?

ATOL stands for Air Travel Organiser's Licence. It is a financial protection scheme run by the Civil Aviation Authority (CAA) that protects package holidays and some flight bookings sold by UK travel companies.

If an ATOL-protected travel company stops trading, ATOL can help ensure that:

• You won't lose money for holidays you haven't yet taken

• If you're already abroad, you can usually complete your trip and return home without additional cost

When you book an ATOL-protected holiday, you should receive an ATOL Certificate, which confirms what is protected and who is responsible for providing that protection.

What does 'ATOL protected' mean?

ATOL-protected means your money and your trip are safeguarded if the travel company you booked with goes bust.

The scheme covers the following:

Refunds before travel - If the company stops trading before you go, you get your money back

Repatriation - If it collapses while you’re abroad, ATOL arranges flights home

Continuing your holiday - They may help you stay in your accommodation or reimburse costs for replacing protected parts of your trip (e.g., hotel, transfers)

How is ATOL funded?

ATOL is funded through a £2.50 per passenger levy, known as the ATOL Protection Contribution (APC). Travel companies pay this money into the Air Travel Trust (ATT) for every ATOL-protected booking.

For APC purposes, a passenger is defined as anyone aged two years or older on any date of travel.

Holidaymakers don’t pay separately for ATOL-protection, but the cost will usually be factored into the overall price of a holiday or flight package.

What does ATOL not cover?

ATOL protection only applies to UK‑based travel companies, so it’s a uniquely British safeguard. ATOL covers holidays that include flights sold as part of a package — typically flights bundled with accommodation and/or car hire. Some flight‑only bookings are also protected, though there are specific conditions.

ATOL doesn’t apply to Linked Travel Arrangements (LTAs). An LTA is a type of travel booking where you purchase at least two different travel services for the same trip through linked booking processes, but the services are booked under separate contracts with different providers.

ATOL also doesn’t cover flights bought directly from airlines, where you receive your ticket immediately.

What is ABTA protection?

ABTA stands for the Association of British Travel Agents. ABTA protection helps protect holidaymakers when they book with an ABTA member.

ABTA primarily covers package holidays and travel arrangements that do not include flights. e.g. coach, rail, cruise, or other land/sea‑based packages.

If an ABTA member company goes out of business, you may be entitled to a refund or assistance if you're already travelling.

ABTA protection can also help if something goes wrong with your holiday and you need support resolving a dispute with the travel company. ABTA provides a code of conduct for its members and offers an arbitration service to help settle complaints.

ABTA protection is different from ATOL protection. While ATOL covers financial failure for UK-sold flight-inclusive holidays, ABTA mainly protects non-flight package holidays and provides additional consumer support and dispute resolution services.

Do I need travel insurance if my holiday is ATOL or ABTA protected?

Yes, it is still a good idea to have travel insurance if your holiday is ATOL or ABTA protected.

This is because travel insurance will cover you in case you need medical treatment while you are away, you have to cancel your plans, or your trip is affected by delays or lost luggage.

Specialised travel insurance policies, such as winter sports cover or water sports cover, can even offer special protection for things like equipment or reimburse you if your planned activities are cancelled.

Is my holiday ATOL protected?

Your holiday is likely to be ATOL protected if you booked a package holiday, including a flight, through a UK-based travel company.

Always check your protection before booking by looking for the ATOL logo and licence number, and make sure you receive an ATOL certificate after you book.

Your holiday may not be covered by ATOL if you booked:

• A flight directly with an airline

• A hotel or accommodation-only booking

• A flight and other travel services separately from different providers (unless it qualifies as a package holiday)

How can I check if my holiday is ATOL protected?

TravelSupermarket is an example of a site that provides ATOL protected package holidays.

What if I book a holiday with a company that’s not ATOL protected?

Booking a package holiday with a travel company that doesn't offer ATOL protection is a risk, as all UK-based businesses selling package holidays are required to provide it.

It's a red flag if a company doesn't have this essential protection.

If you book with a company that doesn’t have ATOL protection:

• You may not be protected against losing money if the travel company goes out of business

• If the company fails before your trip, you may not be able to recover the cost of your booking

• If you’re already abroad when the company collapses, you may need to arrange and pay for your own return travel

Do I need an ATOL certificate?

Yes, your ATOL certificate is crucial. It serves as proof of protection and provides guidance on what to do if your holiday provider fails.

You should receive this certificate immediately upon booking. In the rare instance you don't receive one, ATOL will consider claims without a certificate on a case-by-case basis, but it's best to confirm you will get a certificate before booking.

How can I make a claim under ATOL protection?

• Locate your ATOL certificate, which confirms your protection details

• Contact the Civil Aviation Authority or follow the claims process provided if your travel company has stopped trading

• Provide details of your booking, including your ATOL certificate number, booking reference, and any relevant payment information

• If you haven’t travelled yet, you may be able to claim a refund for your holiday

• If you’re already on holiday when your provider goes bust, you can check the CAA's latest ATOL holders failures for more information about what to do

• Keep any receipts or documents relating to extra costs, as these may be needed when making a claim

• Expect your claim to be processed within 28 working days

Do all European travel agencies offer ATOL protection?

No, ATOL protection is a UK scheme and only applies to travel companies that hold an ATOL licence issued by the Civil Aviation Authority.

Travel agencies based outside the UK do not usually offer ATOL protection, even if they sell holidays to UK travellers.

How else can I protect my holiday?

You can protect your holiday by taking out comprehensive travel insurance to cover risks that ATOL does not, such as medical emergencies, cancellations, lost luggage, and travel delays.

If you book your holiday using a credit card, you may be able to claim your money back under Section 75 of the Consumer Credit Act 1974 should the provider go bust.

Looking for travel insurance?

It's advisable to purchase travel insurance immediately after booking your holiday so you are covered if something happens – such needing to cancel due to illness – before you go.

You can compare travel insurance policies quickly and easily with MoneySuperMarket, ensuring you find the best fit for your needs.