GLOSSARY
Distribution
THE SHORT VERSION
Consolidators let travel agents sell flights without their own airline contracts or IATA accreditation. The agent books through the consolidator’s trade portal or desk, adds a mark-up or service fee to the net fare, and the consolidator issues the ticket and settles with the airline.
The ATOL position
“Consolidator” is not defined in UK travel law. The Civil Aviation Authority (CAA) makes a similar point about broker labels such as commission broker and contracting broker, which it says are not legally defined. How ATOL applies depends on the arrangement. A consolidator that sells only to other ATOL holders, who resell under their own licences, would normally hold a Trade ATOL. If its flights reach the public, directly or through travel agents acting as its agents, it needs an ATOL that allows consumer sales (usually a Standard ATOL) unless the sale is exempt. The CAA’s note for brokers separates a broker that is not party to the contract from one that makes seats available, which needs an ATOL.
Watch out for
Check the fare rules and ticketing deadlines on each fare.
Be clear whose ATOL, if any, covers each sale.
Some consolidators sell only through travel agents and others also sell direct to the public, so check which model a supplier uses.
Sources
The official pages behind this explanation. This is general information, not legal advice, and rules change, so check the latest version.