In the last two weeks, the United Kingdom really took a beating when it comes to bad news. A lot of companies are folding now and we’re more than ever heading for a recession of some sort. The latest folding company caused chaos in the travel industry because a lot of those people who booked holidays were not ATOL protected. I’ve never heard of the term, well, I have but only on advertisements on the radio but never really understood what they meant.

ATOL basically stands for Air Travel Organisers Licensing. This organisation protects air travellers for when a company should go out of business so that they are not stranded somewhere in the world without help. It has become quite clear how important it is to book through a travel agency that is ATOL protected because you will never know when you might be stuck somewhere and there is no flight back home, unless you fork out a few hundred more pounds.

Here is more on what ATOL does for you, from their website.

“ATOL is a protection scheme for air holidays and flights managed by the Civil Aviation Authority (“CAA”). All tour operators and travel firms selling air holiday packages and flights in the UK as a principal are required by law to hold a licence called an Air Travel Organiser’s Licence (“ATOL”).

If you’ve booked and contracted with a licensed tour operator for a complete air holiday package or just a flight, ATOL protects you from losing money or being stranded abroad if the tour operator goes out of business. If a licensed firm goes out of business, the CAA can give refunds to people who can’t travel and arrange for people abroad to fly home.”

Should you want to book your own holidays through various websites and they are not ATOL protected, then at least book with your credit card, that way, you can claim something back if the company folds before or during your holiday. Debit card bookings will leave you vulnerable but is always cheaper. This should also make you think twice about the type of travel insurance you want to purchase. Always read the fine print, however boring it might be.

• ATOL Official Website
• Travel Insurance Guide