ATOL? ABTA?
What Does It All Mean?

ABTA and ATOL are both organisations which are designed to protect your travel plans, but they cover different types of holidays.

ATOL is for holidays that include flights, like when you fly as part of a package holiday. ABTA, on the other hand, covers holidays involving travel by road, rail, or sea, such as cruises, train journeys, or coach tours. However, both ABTA and ATOL apply to package holidays only, which means the bookings you make should be done through the same provider - this makes sure every part of your holiday is covered, so you’ve got security all the way.

ABTA stands for the Association of British Travel Agents, and is there to make sure that if you’re mis-sold a holiday, you get the compensation you deserve. A mis-sold holiday is basically one which is unsuitable for your needs, or has been advertised under a misrepresentation; it is essentially a breach of contract. This is where the legal protection segment of ABTA steps in. The other segment is financial, which would include a full refund if your holiday is indeed mis-sold, or if your travel provider ceases trading. This can be handy if you’re already abroad when they go out of business - you can either return home on a paid-for journey, or continue your trip with little interference.

The main thing to remember when it comes to ABTA, is that you can only claim their support if your holiday does not include flights. Their protection is for trips booked in the UK which include cruise, rail, or driving holidays. They also cannot help if you claim for something which is outside of the company’s control (like bad weather), or if you returned home more than 18 months ago.

ABTA members are bound to a Code of Conduct, which includes standards surrounding pricing, advertising, and business practices. This is to make sure that consumers are treated fairly and have the peace of mind that they’re dealing with a trusted, reputable organisation.

ATOL stands for Air Travel Organiser's Licence. It’s a legal requirement for all UK companies which sell overseas holidays and flights, such as tour operators or travel agents. Compared to ABTA, ATOL provides a more specific form of protection, which is flights included in package holidays. A package holiday is when you book at least two travel elements through a single provider, such as flights, accommodation, car hire, and excursions, whether this is online or in person. It’s similar to ABTA in the way that you can get a refund for your holiday or arrange a replacement flight if your travel company or airline goes bust, but they cannot pay out of pocket for a new flight home if yours is cancelled - in this situation, it’s the airline’s responsibility to put you (for free) onto the next available flight.

In essence, ABTA covers a wider range of travel arrangements, while ATOL focuses on flights. Although both provide a certain level of protection, don’t forget that travel insurance can cover you for plenty of other circumstances, such as:

1. Personal belongings which are lost, stolen, or damaged while you’re on your trip.
2. Cancellation and curtailment for reasons other than travel provider cessation, like illness or a natural disaster. 
3. Travel delay if you miss your departure due to a covered reason in your policy.
4. Emergency medical expenses if someone on the policy becomes unexpectedly ill, is injured, or passes away during your trip.
5. Repatriation to your home country if this is medically necessary.

Get a quote with Direct Travel Insurance today, to make sure you’ve got peace of mind and protection where ABTA and ATOL cannot provide it.

BY HOLLY GARWOOD, 19TH AUGUST 2024

Sources
Association of British Travel Agents |ABTA
Air Travel Organiser's Licence | ATOL