Non-UK based Travel Organisers can apply for ABTOT Membership

Travel Bonds are typically the most cost-effective form of financial protection and require less time spent on administration, requiring only quarterly declarations and an annual renewal. Every Travel Bond has to be accompanied by ABTOT’s shortfall policy:

• The shortfall policy is a requirement under Reg 21 of the PTRs.
• It enables a lower overall percentage of annual turnover to be bonded.
• All Members contribute to the shortfall policy premium based on the size of their travel bonds.

The Shortfall policy provides a second layer of protection in case the value of Travel Bonds held by the ABTOT Member turns out to be insufficient in the event of a failure.

Financial Failure Insurance (FFI) can be useful for start-up travel companies or emerging companies:

• Financial protection is paid only on confirmed bookings, which are declared monthly.
• ABTOT’s FFI is a pay as you go scheme backed by an A+* rated insurer allows travel organisers to fulfil their obligations to cover customers’ payments under the Package Travel Regulations.

ABTOT ATOL Franchise

Membership is a condition of the ABTOT ATOL Franchise and an ABTOT bond will be needed for your non-licensable (non-flight) bookings as well as one for your licensable (flight inclusive) ATOL bookings.
If you apply for the ATOL Franchise:

• There is usually no additional financial criteria on top of ABTOT’s Membership criteria of £10k paid up share capital.
• The bonding requirements are generally less than the CAA’s requirements subject to an underwriter assessment.
• The passenger limits of a Franchise ATOL are double that of a Small Business ATOL.