Why Travel Bonds?
ABTOT Travel Bonds are an insurance guarantee that protects Members’ customers money in the event of the Member’s business failing. Our travel bonds also ensure that the travel organiser is complying with their insolvency protection obligations as required in the UK 2018 Package Travel Regulations.
ABTOT is a government approved body authorised to run a regulated bonding scheme. We are also an appointed CAA ATOL Franchisee and the only approved body in the UK offering bonding for both ATOL and non-ATOL holidays.
Why Choose Travel Bonds?
- Protects your customers’ money and your business reputation
- Helps you comply with the 2018 Package Travel Regulations
- No need to lock up capital with your bank — most insurance-backed bonds are unsecured
- Straightforward quarterly reporting and annual renewal
- Supported by a team with over 30 years’ experience
How Travel Bonds work?
A travel bond can be guaranteed by a bank or by an insurance-backed provider. Insurance-backed bonds are usually unsecured — you pay an annual premium based on your company’s financial strength rather than providing cash security.
Travel bonds are one of the main insolvency protection options recognised under the 2018 Package Travel Regulations (PTRs). To use a bond, you must be a Member of an approved body such as ABTOT. We ensure that your bond is set at the right level and fully compliant with the regulations.
Every ABTOT Travel Bond is supported by a shortfall policy, required under Regulation 21 of the PTRs. This policy adds an extra layer of protection for consumers. It means that if a Member’s bond does not fully cover customer claims, the shortfall policy steps in. All Members contribute to the cost of this policy based on their bond size.
ABTOT can organise Financial Failure Insurance as an alternative to Bonds.
Financial Failure Insurance (FFI)
FFI can be a good option for start-ups or growing travel companies. Protection is paid monthly on confirmed bookings rather than at the start of Membership. It involves more administration but can help new businesses manage cash flow while staying compliant.
Eligibility
Applicants will be required to meet the minimum paid-up share capital requirements and prove adequate funds available to support the business.
Ready to protect your customers and simplify compliance?
Our team will guide you through every step — from assessing your business model to arranging your bond.
Call 0207 065 5313 or email enquiry@abtot.com to get started.
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