Why Travel Bonds?

  • Travel Bonds can be guaranteed by a bank bond or by an Insurance backed bond. 

    Travel Organisers (Tour Operators and Travel Agents) choose Travel Bonds as security for ABTOT Bonds, ATOL Bonds, ABTA Bond and BCH ABTOT Bonds.  

    Travel Bonds can also be referred to as Holiday Bonds. 

    A Travel Bond is calculated as a percentage of your annual projected turnover relating to the packages which require to be financially protected. 

    Typically, when you bond with your bank you will be asked to put cash security against the amount of your bond.  An insurance backed bond tends to be unsecured and you are charged an annual premium based on the financial strength of your company, as illustrated in your latest Year End Accounts and Management Accounts.  

    Travel Bond Insolvency Protection

    Travel Bonds are one of the major insolvency protection options which the 2018 Package Travel Regulations  (PTRs) permit travel organisers to use for non-flight packages. 

    To use this option the Travel Organiser must be a Member of an approved body (approved by the Department for Business and Trade). The Department for Business and Trade regulate the approved bodies who then oversee the bonding process to ensure that the bond is at an adequate level to meet insolvency requirements.

    FAQs

    What will happen to my bonding if I sell more holidays than I have projected?

    ABTOT will monitor this via your quarterly declarations. If you exceed your original projections we will review to see if a variation or a ‘top up’ to your original bond is required to ensure you remain compliant with the Regulations. If this is the case, variation terms will be prepared by ABTOT and Travel & General Insurance who underwrite the bonds.

    Can I receive a refund on my bonding costs if I sell less than I predicted?

    The bond amount and premium paid is fixed and cannot be reduced until renewal where a replacement bond is provided based on new 12 month forecasts and full underwriter assessment.

    more Travel Bonds FAQ’s


    • Happy to have recently become a member of ABTOT. The process was personal, helpful, and efficient. Everyone we dealt with was happy to hold our hands through the process as well as give ‘real-world’ view of what is required, rather than “please refer to handbook” approach. This was incredibly helpful when preparing financial projections. Giving the significant advantages of joining ABTOT, compared to the alternatives, the time and effort required to ensure all paperwork was in order was a very small price to pay. Happy to be part of the family



    • As our insurance was becoming increasingly expensive and complex, we decided to take another look at bonding – and were pleasantly surprised. The ABTOT application proceeded quickly and smoothly and the final price even offered us a saving. We found ABTOT to be responsive and helpful when the inevitable questions came up and we are very happy to be on board



    • I have been with ABTOT since launching my business (FishTravel) around two years ago. This was during Covid when travel was impossible, yet the wonderful team at ABTOT worked with me during those uncertain times to help create what is undoubtedly the backbone of my business. They reassure me, but, more importantly, provide reassurance to my customers.



    • ABTOT’s onboarding process was seamless and efficient. From the initial contact to the submission of required documentation, their team provided clear guidance and support. The financial assessment and compliance review were thorough yet conducted in a timely manner, ensuring that our company met the highest standards. We appreciate ABTOT’s commitment to protecting non-flight packages for UK customers, and we look forward to a successful partnership.



    • We have been members of ABTOT for over 20 years, and we remain completely delighted with the service we receive from the ABTOT team. They are always responsive and helpful and a pleasure to deal with. Occasionally, when we have had a struggle with an issue, they have given us professional advice that has been a godsend which we would have been hard to find elsewhere. This stems form their broad overview and experience of the travel sector.  So, not only do they provide a first-class service for the ultimate benefit of our customers, they are adept at helping us keep our business in good shape as a travel provider.



    • We applied to join ABTOT in late 2020, at what was a very difficult time for the travel industry! The staff at ABTOT and at Travel & General were a great help in guiding us through the initial application process, and with each annual renewal in the years since. We’ve found Vicky, Samantha, Marie and Samin to be attentive to, and interested in, the specifics of our business whenever we’ve needed to discuss our bonding requirements, and consistently helpful when we’ve sought their advice.



    • We are an established business who had previously used FFI to protect customers for our non flight packages but we wanted to move to ABTOT bonding because it was more efficient for the business. ABTOT made the process very easy and the time from application to offer was very quick. I can understand why the reputation of ABTOT continues to grow.



    • We have found that the reassurance our ABTOT membership gives to clients has helped us drive our business forward much faster than we had expected. The team at ABTOT are always on hand to help when required and the joining and renewal process is painless and simple to complete.



    • Prior to joining ABTOT, I had experience working with both ABTA and the TTA. What initially attracted us to ABTOT was the unique ability to house our ATOL and non-ATOL packages under one body, simplifying our operations significantly.

      From the beginning, our interactions with ABTOT were excellent. Natalie and Tejash were incredibly helpful, guiding us through the application process with remarkable ease. Natalie, in particular, was always available to jump on a call and answer any queries I had.

      Once we submitted our application, we received our quote quickly, and any follow-up questions we had were addressed promptly and efficiently.

      Overall, our experience to date with ABTOT has been excellent, and I am excited to continue working with the ABTOT team as we embark on this journey together.



    • I can honestly say that it is a pleasure to deal with all the staff at ABTOT.  Always a friendly voice to lead me through the labyrinth of the licence renewal process.  I would thoroughly recommend using the ABTOT franchise method for renewing the bonding of non-licensable business, and the ATOL licensable packages.   So much easier than dealing with them separately, and more cost effective.   The team at ABTOT make me feel like I am a ‘Gold Star’ customer, and even my smallest queries are answered with tolerance, humour and efficiency.   Long may the system continue, though of course I always pray for less bureaucracy on the part of government.


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