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ATOL Protection set to increase bite

Consumers are to be given broader coverage under the ATOL protection scheme irrespective of how they buy their holiday.

People who buy holidays online by booking a flight and are then directed by the airline to a separate company to book accommodation within 24 hours will get new protections from 2018 so they are not left stranded abroad or lose money if their travel firm goes bust.

The 2017 ATOL Bill aims to make it easier for the ATOL Regulations to keep pace with changing technology in the travel industry and aims to ensure ATOL protection extends to travellers who book flights, hotels or car hire that are not sold as traditional package holidays. The move will cover a gap in the growing internet travel market by bringing up standards to those available on the high street. The measures in the Bill are designed to give government the ability to set up appropriate protection that is flexible enough to handle the modern travel industry, by allowing it to establish separate funds for different types of holiday and booking method.