By law, every UK travel company which sells travel including flights and flights only, is required to hold an ATOL, which stands for Air Travel Organiser’s Licence.
If a travel organiser with an ATOL ceases trading, the ATOL scheme protects customers who had booked holidays with the firm. It ensures they do not get stranded abroad or lose money. The scheme is designed to reassure consumers that their money is safe, and will provide assistance in the event of a travel company failure.
ATOL was first introduced in 1973, as the popularity of overseas holidays grew. After a number of travel company failures left people stranded, the UK Government realised consumers required holiday protection should firms in the unregulated travel sector fall into difficulties.
ABTOT has an ATOL franchise with the CAA, which opens the door to cover for both licensable (flight-inclusive) and non-licensable (non-flight) turnover. See ATOL Franchise
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