This will depend on your business model. As part of the application process we conduct a detailed review of how you trade e.g. types of travel arrangements sold, whether these form a package and the capacity in which you act – principal and/or agent.
If you act as an agent then you must provide ABTA with a bond. This is a form of surety issued by a bank or insurance company that guarantees in the event of your insolvency payment of a fixed sum to ABTA to mitigate financial loss.
If you act as a principal and are required to provide consumer financial protection either by virtue of the Package Travel Regulations and/or on a voluntary basis you have the option to provide either a bond or obtain financial failure insurance (FFI). Our experience has shown that it can be difficult to obtain FFI if you are based outside the UK and we recommend you check first before applying.
If you are based in the EU then you may be exempt from this requirement where you participate in a scheme of consumer financial protection in your home state which is acceptable to ABTA.
Yes, we have a list of approved bond providers and insurance companies that offer financial failure insurance.
You can request your bank to apply to ABTA to become approved subject to our credit risk assessment. Alternatively your bank may be able to arrange an indirect guarantee with an approved bank who in turn will issue the bond to ABTA.
If you are a principal or a package organiser you are required to have public/product liability insurance. Our experience has shown that it can be difficult to obtain if you are based outside the UK and we recommend you check first before applying for ABTA.
Whether you sell a flight-inclusive package or a tailor-made package which includes a flight, you may require an Air Travel Organisers Licence (ATOL) which is granted by the Civil Aviation Authority (CAA). For flight-inclusive packages this also covers internal flights in destination as well as international flights ex-UK.
For more information on the ATOL Scheme please visit the CAA website or speak to us.
Subscriptions are based on UK turnover, which means travel arrangements offered for sale in the UK and/or overseas turnover where the first leg of departure is from the UK. This forms part of the turnover analysis which is reported to ABTA on a regular basis.
You are only required to pay VAT if your trading address is in the UK.