What ATOL means for travel businesses and their customers
An ATOL protects customers who buy flight-inclusive packages if the travel business fails. It also puts clear financial duties on the business that holds it.
How ATOL protection works.
A business that sells flight-inclusive packages needs an ATOL. The licence means the business must protect customers' money before travel and must bring customers home if it fails. The Civil Aviation Authority (CAA) sets the rules and oversees each licence holder.
Who needs an ATOL
Travel businesses that sell flight-inclusive packages as principals, including tour operators, specialist operators and some travel agents.
What customers receive
A booking that is ATOL protected comes with an ATOL certificate that sets out what is protected and how to claim if the business fails.
What the APC levy pays for
The APC levy is a per-passenger payment, currently a flat £2.50, that funds the protection behind the scheme. The CAA has consulted on making it variable.
Where to go next.
Once you know what ATOL is, the next questions are usually about renewal, reform and how the protection is evidenced to the CAA and your trustee.
ATOL renewals
What the CAA, your trustee and your auditor look for when a licence comes up for renewal.
ATOL reform
The proposed changes to the APC levy and how segregation of funds could be rewarded.
ATOL and ABTA
The difference between the CAA licence and ABTA membership, and why many travel businesses hold both.
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