ABTA and ATOL – What are they and how do they protect my holiday plans?

There has been some talk recently within the travel industry about some well-known holiday companies, such as On the Beach, dropping out of the ABTA scheme. For some people, they may not fully understand what this means, so I have put together this blog to bring awareness to this, so you know what you’re buying, and how it may affect your future bookings with these particular companies, especially as we deal with On the Beach here at Beaches and Dreams. OK, so first of all, what is the difference between ABTA and ATOL? 

ATOL, which is short for Air Travel Organiser’s Licensing, sits alongside ABTA, but it is specifically designed to cover people who fly. Whereas ABTA, which stands for Association of British Travel Agents, covers rail, road, or sea travel holidays. A tour operator may cover one or both of these types of protection. For example, TUI, Jet2Holidays and EasyJet Holidays have both types of protection. On the Beach however, is ATOL only protected.

You should always check to see if the holiday provider you use is ABTA or ATOL protected, this will help you understand what your rights are if something goes wrong.

So, what does the difference between ABTA and ATOL protection mean for my holiday?

ABTA’s scheme covers non-flight-based holidays, linked travel arrangements and travel agents. It offers two forms of protection – legal and financial. A company offering ABTA protection means they have an obligation to ensure that customers get the holiday they paid for. ABTA protection is designed to enforce standards and provide insurance for holidaymakers in the event of financial problems for travel companies.

So, if you have an issue with your packaged holiday, you might be able to get an alternative holiday or a refund as compensation through ABTA. For example, if you are not told that there is building work going on at the hotel and it disrupts your holiday, you could apply for compensation. ABTA protected holidays are also protected in the event of a company ceasing to trade, such as Thomas Cook this time last year. In the unlikely event your travel company goes out of business, ABTA protected holidays offer a quick, clear and simple process for you to follow, so you’ll be able to continue your holiday as planned or get your money back.

Customers who have not yet travelled on their booked holiday are entitled to get a refund for their planned trip if it is not possible to go ahead, of course, a tour operator or travel company may ask if you’d prefer to amend your plans, but you are entitled to refuse. For those who are already abroad when a company ceases trading, or cancels flights, they will be brought home through ABTA.

It is important to know that ATOL protection applies to package holidays with flights only, and if an ATOL-certified travel company ceases trading, customers are also protected for both their holiday and their flight, so long as they have booked the package together under the ATOL bond. In addition, if the customer is already on holiday, then they will be flown home through ATOL with repatriation flights.However, just because a company has an ATOL licence doesn’t necessarilymean that any booking you make with them is financially protected. This is because if you have booked your own flights elsewhere, and are just using a tour operator to handle the ground arrangements, you are not booking an ATOL bonded holiday. 

To best explain how ATOL protection works, let’s use Monarch Holidays as an example. Their customers were protected when the airline ceased in 2017. This is because they had booked flights and a holiday together through a provider with the ATOL certification. Had a client booked flights separately from the rest of the holiday, they would not have been covered. There are no other added benefits with an ATOL protected holiday as there are with ABTA protected holidays.

So, what should I do?

I think it’s important to weight up how much risk you are willing to take. Generally, you might get your holiday slightly cheaper if you book through an ATOL only packaged holiday, however you will receive a higher rate of protection shouldyou book with an ABTA and ATOL protected company. I have done both personally, but I think it depends on personal circumstances. There is no right or wrong answer here, but it is always important to know what each certification includes, so you can make an informed decision on who is best to book your holiday with. I hope this has helped clarify!

Important: More information is available online. You should always check for yourself if you are unsure about ABTA and ATOL Protection before making your booking. This blog is here for general information only and is not intended to give finite information. It is your responsibility to check details on the official websites available for both ABTA ad ATOL prior to booking.