ATOL & ABTA Protection Explained
Your Guide To ATOL and ABTA Holiday Protection
When you spend hundreds or even thousands of pounds on a holiday, knowing that your money is protected matters. If you have ever booked a package holiday and seen the words ATOL Protected or ABTA, you may have wondered what they actually mean and whether they make a real difference. The short answer is yes — they genuinely do. This guide explains both schemes clearly, what they cover, how they differ, and what you should look for before you book your next break, whether that is a Jet2 package holiday, a TUI holiday, or any other flight-inclusive trip.
What Is ATOL Protection?
ATOL stands for Air Travel Organiser's Licence. It is a government-backed financial protection scheme managed by the UK Civil Aviation Authority (CAA), introduced in 1973 as package holidays first became popular. Every UK travel company that sells overseas package holidays including a flight is legally required to hold an ATOL licence. If they do not, they are operating unlawfully.
The scheme exists to protect you if the travel company you have booked with goes out of business — either before you travel or while you are already on holiday. If a company collapses before your departure, you are entitled to a full refund of everything you have paid. If it happens while you are abroad, the CAA will work to ensure you can complete your holiday and return home without paying anything extra.
When you book an ATOL-protected holiday, the travel company must issue you with an ATOL Certificate at the time of booking or when you make your first payment. This certificate is your proof of protection. It lists exactly what is covered — your flights, accommodation, transfers and any other included services. Always save a copy and take it with you when you travel. Since 2019, ATOL has helped bring home more than 242,000 holidaymakers and settled over 1.7 million claims, including repatriating 140,000 Thomas Cook customers in 2019 within just 14 days.
What Is ABTA?
ABTA stands for the Association of British Travel Agents. Unlike ATOL, which is a government-backed legal requirement, ABTA is a trade association that travel companies can choose to join. With over 4,300 travel brands as members, it is the UK's largest and most recognised travel trade body.
ABTA protection covers two things. First, it provides financial protection for package holidays that do not include a flight, such as cruise holidays, coach tours and self-drive packages. If an ABTA member company collapses, you will either receive a refund or be able to complete your holiday. Second, ABTA sets and enforces a Code of Conduct that all member companies must follow, covering fair pricing, accurate advertising and ethical business practices.
ABTA membership also gives you access to an independent complaints resolution service. If something goes wrong with an ABTA member's holiday and you cannot resolve it directly with the company, ABTA can step in to mediate. This applies even if the company has not gone bust, for example, if a hotel was significantly not as described or a service was not provided as promised.
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What Is The Difference Between ATOL and ABTA?
The simplest way to remember the difference is this: ATOL protects flight-inclusive package holidays. ABTA protects non-flight package holidays and sets customer service standards for its members.
If you book a package holiday that includes flights and accommodation through a UK travel company — which covers most beach holidays, city breaks and long-haul trips booked through operators like TUI, Jet2holidays, On The Beach and First Choice — your financial protection comes from ATOL. ABTA is relevant for cruise holidays where the cruise line includes the full package, coach tours, rail holidays and self-drive packages.
Many of the major UK tour operators hold both ATOL and ABTA, which means you get dual protection. TUI and Jet2holidays, for example, are both ATOL and ABTA members. This means whether you are booking a flight-inclusive package or a non-flight holiday through them, you have financial protection. loveholidays holds ATOL protection but is not an ABTA member, so the ABTA Code of Conduct does not apply, though their flight-inclusive packages are still financially protected by ATOL.
One important thing to note: neither ATOL nor ABTA is a substitute for travel insurance. Both schemes only come into play if the company you have booked with goes out of business. They do not cover cancelled or delayed flights, medical emergencies, lost luggage or trip cancellations due to illness, all of which are covered by travel insurance. We always recommend having both ATOL or ABTA protection and a comprehensive travel insurance policy for complete peace of mind.
ATOL Protection: Key Things To Remember When Booking
Book as a package where possible. Booking your flights and accommodation together through a single UK travel company is the simplest way to ensure you have ATOL protection. Booking them separately — flights directly with an airline, hotel through a different website — means neither element is likely to be ATOL protected.
Always get your ATOL Certificate. As soon as you make any payment, even a deposit, you should receive an ATOL Certificate from the travel company. Save it, email it to yourself and take a copy on holiday. It is your proof of protection and your guide to claiming if anything goes wrong.
Check the register before you book. Before handing over any money to a travel company you are not familiar with, spend one minute checking atol.org to confirm their licence is current. A company that cannot be found on the ATOL register should not be trusted with your holiday booking.
Remember that ATOL is not travel insurance. Even if your holiday is fully ATOL protected, you should still have travel insurance. ATOL only covers you if the company goes bust. It does not cover medical emergencies abroad, personal belongings, flight cancellations and delays or any of the other things that can go wrong on a holiday.