Every UK package organiser must protect the money its customers pay against its own insolvency. Packages with flights are protected through ATOL. For packages without flights, the Package Travel Regulations 2018 allow a bond with an approved body, insurance or a trust account.

ABTOT is one of the two approved bodies named in the government’s guidance for businesses, alongside ABTA. Its members, mainly small and medium-sized organisers, protect their customers either with a bond payable to ABTOT or with financial failure insurance arranged through ABTOT. If a bonded member fails, ABTOT refunds customers who have not yet travelled and arranges for those already away to get home. ABTOT says every bond it holds is backed by a shortfall insurance policy. It is also one of the CAA’s ATOL franchisees, so members selling flight-inclusive packages can get their own Franchise ATOL through ABTOT.

Bonded Coach Holidays

Bonded Coach Holidays (BCH) is the protection scheme for coach holiday operators that are members of the Confederation of Passenger Transport (CPT). ABTOT has run it since 1 May 2021, and BCH members keep the BCH name and logo. It covers coach holidays without flights. Coach holidays that include flights need ATOL.

Worth knowing

• Despite the word Trust in its name, ABTOT is a private company limited by guarantee. It is not part of ABTA or the government.

• A bond protects customers if the member itself fails. It is not travel insurance and does not cover the failure of a supplier.

• A guarantee held with your own bank, rather than a bond payable to an approved body, does not meet the bonding option.