Beyond Medical: What is Scheduled Airline Failure and ATOL Protection?

ATOL protects flight-based holidays, ABTA protects land/sea-based holidays, and Travel Insurance covers "everything else" like medical emergencies and cancellations. To be 100% safe, you need a combination of the three.

Booking a holiday can sometimes be as nerve-wracking as it is exciting. You've no doubt put a lot of time and money aside to plan for your dream getaway, so if anything goes wrong, it puts all of this at risk. We believe that everyone planning their holiday deserves to have peace of mind and relaxation at the centre of the experience, not anxiety.

ATOL vs. ABTA: What’s the Difference?

What is ATOL Protection?

You must ensure you are ATOL protected before you travel. ATOL stands for 'Air Travel Organisers’ License' and is run by the Civil Aviation Authority. It was introduced in 1973 and updated in 2012 to ensure that consumers are protected should travel companies go bust and not end up stranded. Customers should always check that the company they're using has an ATOL licence, as this means they will be protected should the company cancel the holiday or dissolve.

 For example, the insolvency of Monarch Airlines in 2017 saw many people with booked holidays out of pocket and some stranded abroad with their return flights cancelled. In this instance, over 100,000 people were repatriated thanks to ATOL protection, proving just how vital it is. Those without ATOL protection would have to find their own way home by booking new flights, with no guarantee there would be any available transport or accommodation, and activities potentially cancelled.

 You can check your holiday is ATOL protected by looking for the logo on travel company websites and ads, or asking your travel company or agent directly. The Civil Aviation Authority also has a search tool which allows you to check that a company claiming to be ATOL protected is telling the truth.

 An ATOL certificate is a physical/digital document that you must receive at the time of booking. Check with your travel agent or travel site if you don’t receive it.

 What is ABTA Protection?

Similarly, ABTA is another important type of protection that can provide urgent help should things go wrong on your holiday. It stands for the Association of British Travel Agents and is made up of travel agents and tour operators. It's equivalent to ATOL in that it offers protection should your travel company encounter financial problems, organising a way for you to continue the holiday and get home, plus receive any refunds you're owed. However, the key difference is that ATOL is specifically designed to cover holidays where you have travelled by air, whereas ABTA is for holidays that don’t include flights, such as a coach, rail or cruise package holiday.

 ABTA has a detailed code of conduct that all of its members must adhere to, which includes guidance on advertising, when bookings can be changed, paperwork and complaints procedures. They also have a scheme in place for resolving complaints/disputes with travel agents. Furthermore, if a complaint is made to a tour operator or travel agent and the resolution is unsatisfactory, the matter can then be escalated to ABTA.

 Check your travel company’s website for information that states they are ABTA protected. Companies legally have to provide you with a protection certificate for either ABTA or ATOL protection, which you should take with you on holiday in case of an emergency to prove you are covered.

Financial protection and package holidays

Package holidays are a fantastic option for those on a budget, as it's possible to get all the services you need for one set price. This usually includes transport, accommodation, food and drink, but sometimes extends to excursions and vehicle hire as well, saving you the hassle of trying to research and organise all of these things individually. This can be particularly useful if you're going to a non-English speaking country or are very new to the place you're visiting, as you have peace of mind that everything has been dealt with already.

A key benefit of booking via a package holiday provider is that they are covered by extensive regulations put in place by the government. Without these, there would be potential risks associated with third-party services not communicating with the package holiday provider, resulting in one part of the holiday falling apart, which could then affect the other parts.

There are regulations to protect you from instances like this happening, which make the organiser liable for the performance of the services that make up the package. These regulations ensure that you get refunded should anything go wrong and require providers to have detailed information available to you so that you know exactly what you are buying and the protections in place.

Package holidays are also more likely to be covered by ATOL and ABTA protection.

The "DIY Travel" Trap: Why ATOL might not be enough

Booking your trip piece by piece can feel like a smart way to save money or stay flexible, but it can also leave you exposed.

If you book a flight directly with an airline and then arrange your hotel through a separate website, your trip is not covered by ATOL protection. ATOL (Air Travel Organiser’s Licence) only applies when you book a package holiday or certain flight-inclusive deals through a single provider. So, if something goes wrong, like your airline collapses or your accommodation provider cancels, you may have little to no financial protection.

There’s also a grey area known as Linked Travel Arrangements (LTAs). This happens when, for example, you book a flight and are then prompted, often within 24 hours, to book a hotel or car hire through a partnered site. While LTAs do offer some protection, it’s limited. Typically, it only covers the failure of the travel company facilitating the link, not the individual services themselves. That means gaps in your coverage can still exist.

 Section 75: The Credit Card Safety Net

 One of the most powerful and often overlooked forms of protection in the UK comes from Section 75 of the Consumer Credit Act 1974.

If you pay for any part of your holiday using a credit card, and the total cost of the purchase is between £100 and £30,000, your card provider is jointly liable with the company you booked with. This means that if the travel company goes bust, cancels your booking, or fails to deliver on its promises, you can claim your money back directly from your bank.

This protection applies to a wide range of purchases; flights, hotels, and even package holidays, as long as you paid using a credit card and there is a direct relationship between you, the card provider, and the supplier.

Pro tip: You don’t need to pay the full amount on your credit card to qualify. Even paying a small deposit (as little as £1) on your credit card can trigger Section 75 protection for the entire cost of the booking.

Why Travel Insurance is the final piece of the puzzle

Travel insurance may seem like an unnecessary added expense to your holiday, but this isn't the case in reality. It doesn't have to be expensive and can help you save money in the long run if things go wrong when you're on holiday.

For example, travel insurance policies are designed to cover medical bills should you encounter a medical emergency, with specialised rates for those over 65 or with pre-existing medical conditions, for whom it is especially important to be covered. Overseas medical bills can be very expensive and could pose a real problem if you're not prepared.

 Travel insurance can also provide cancellation cover if you need to cancel your holiday due to illness, injury or being called for jury service.

Note that ABTA and ATOL protect your money if a company fails. They do not protect you if:

• You get ill and have to cancel.
• You need emergency medical treatment abroad.
• Your luggage is stolen.

Don't leave your protection to chance; get insured with Total Travel Protection today.

Frequently Asked Questions

Does ATOL cover me if the airline goes bust?

Yes, but only if it’s part of a package.

If your flight is booked as part of an ATOL-protected package holiday, Air Travel Organiser's Licence will cover you if the airline goes bust (refund or getting you home).

If you booked directly with the airline, ATOL usually does not apply, you’d need credit card protection.

What happens if my travel agent fails but the airline is still flying?

If your travel agent fails but the airline is still operating, what happens depends on your protection.

• With Air Travel Organiser's Licence (ATOL): You’re covered. Even if the travel company goes bust, your booking should still be honoured, or you’ll be offered an alternative or a refund.
• With ABTA (for non-flight packages): You can claim a refund or get help continuing your trip.
• Without protection (DIY bookings): You may need to pay again to secure your flight or services and then try to reclaim the money later.

Bottom line: If you booked a protected package, you’re safe. If not, you’re at risk.

Is my "Flight-only" booking protected?

In most cases, no.

If you’ve booked a flight on its own, especially directly with an airline, it’s unlikely to be covered by Air Travel Organiser's Licence (ATOL). ATOL protection usually only applies to package holidays or flight-inclusive deals booked through a single provider.

That means if something goes wrong, like the airline cancelling or going bust, you may not have automatic financial protection. To stay fully protected, we recommend paying by credit card for added legal protection.