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Travel Trust Accounts -FAQs

How do our travel trust accounts look after customers’ money? …

  • Trust account holders are obliged to pay all money taken from customers for travel arrangements sold which require financial protection directly into a separate designated trust bank account.
  • Funds remain in the trust account in line with parameters set by law or negotiated with the CAA as part of your ATOL renewal or application.
  • A payment request is made by the travel company to Serenity trustees in line with agreed parameters for release.
  • Serenity trustees approve the request.
  • A Serenity account handler and a senior Serenity auditor must authorise the payment out of the account.
  • Payments into and out of the account can be viewed online at any time.
  • Accounts are reconciled and audited in line with parameters agreed with the CAA or imposed by Serenity trustees

Why you really should think about implementing a travel trust account as a means of providing financial protection for travel arrangements…

Compliance with Regulations – Serenity’s travel trust accounts comply 100% with the Package Travel etc. Regulations and are fully endorsed by the CAA as being a means of achieving their requirements for financial protection.

Overcome common start up obstacles – such as obtaining an ATOL or a Merchant Services facility.

No Expensive Bonding – It’s no secret that the cost of bonding is on the up. With the CAA’s minimum ATOL bond requirement at £40,000.00, this option is prohibitive for a start-up or low turnover business.

Economy and efficiency – Once our travel trust accounts are set up, running costs are low and systems streamlined; and you don’t have to waste time on annual renewals.

Avoids the risks associated with insurance policies – Insurance policies can contain loopholes that insurers can jump through to avoid paying a claim. This can leave your customers high and dry in the event of an insolvency and you in serious trouble.

ATOL friendly – A trust account makes meeting the CAA’s balance sheet requirements for a successful ATOL application easier to achieve. The CAA’s 2021 ATOL Consultation suggests that the CAA are moving towards favouring a trust account solution to the more traditional ATOL bond.

Merchant Acquirer friendly  – Most merchant acquirers operating within the travel industry recognise the security that a travel trust account brings.

Sound financial protection for you and your customers – Consumer’s money will be securely held in a designated account in accordance with the trust deed in place.

Dual Security –  Your Serenity account handler and a senior Serenity auditor must authorise payments out of the trust account, which means that the opportunity for fraud is greatly reduced.

Online access to view payments into and out of the account – So you have the freedom and autonomy to manage your own credit control.

Fully Insured – We have sourced a range of suitable insurance policies to provide fidelity and supplier failure cover for our account holders at favourable rates. We are fully insured and are regulated by the Solicitor’s Regulation Authority.

No annual membership fee – And no payment for access to services that you don’t need.