05/07/2017

From 2018, consumers who book their holidays online will get the same protections as those who book on the High Street, under new legislation that will extend the ‘ATOL Protection Scheme’ to cover a gap in the fast-growing Internet travel market.

The Air Travel Organisers’ Licence (ATOL) protection scheme was set up in 1973 to cover charter flights and package holidays after a number of travel company failures left holidaymakers out of pocket or stranded.

In 2012 it was extended to cover all overseas air holidays where a flight and accommodation were booked together, as well as some flights booked separately.

Funded by a £2.50 contribution from travel companies for each protected passenger, it promises to provide either a refund or a flight home if their travel company goes bust.

With the Association of British Travel Agents’ ‘Holiday Habits Report 2016’ revealing that more than 75% of British holidaymakers booked online that year, the new legislation will ensure ATOL can keep pace with changing markets and technology – for example, by protecting people who book flights, hotels and car hire that are not sold as a package.

It will also make it easier for UK firms to sell air holidays across the EU by enabling them to offer European consumers the same protection available to British consumers.

When ‘Air Travel Organisers’ Licensing Bill 2017-19′ received its 2nd reading in Parliament on Monday, 3 July, it became the first Bill debated in the Commons after the Queen’s Speech.