What is ATOL License?
ATOL (Air Travel Organiser’s Licence) is a scheme that protects passengers and their money if the travel operator they booked with goes out of business before or during their vacation. This implies you can either claim your money or continue your vacation and be repatriated.
The bulk of ATOL-protected trips are package holidays, which are when you buy various travel components, such as flights and hotels, for a single fee through a tour operator or travel agent (either online or in person).
ATOL Scheme established on: 1973
How ATOL protects?
If the travel operator / provider is ATOL protected, it comes into force when the operator ceases trading and it will not cover for the cancelled flights.
Who can take ATOL License/eligibility?
Each application is unique; it is not possible to provide extensive information on the expected requirements for the grant of a license.
- Legally, the CAA must be satisfied that the people who own/control the firm are fit and able to have a license.
- It will request information about the people in positions of influence inside an applicant and examine whether they are likely to act properly if granted a license.
- If its preliminary opinion is that the people are unfit or incompetent to have a license, it will issue a proposal to refuse the license application, explaining why it reached that conclusion and offering the applicant an opportunity to object.
Procedure to apply ATOL License
- Create a portal account
To apply for an ATOL, you must first create an online account and check ATOL Online for instructions.
- Submit the application
An online application must be completed and returned, together with the necessary application fee and accompanying papers. Application costs are non-refundable.
- Provide financial information
Your financial expectations will be assessed as part of the application process. In the event of a new company, we will need a certified opening balance sheet and financial projections, which you will be requested to supply during the application process.
- Initial assessment
One of the Directors/Partners will be invited to take the ATOL Accountable Persons online course during the assessment stage of the process. After that, the application will be evaluated.
- Formal Meeting
A formal meeting with the CAA is usually required. At the meeting, we will go through the financial components of the case in depth, compare them to our published standards, and outline any necessary cash injections.
- Offer letter
If the applicant accepts the decision proposed at or after the meeting, a formal decision letter is given outlining all of the prerequisites for granting a license.
Types of ATOL License
- Standard ATOL: if you expect to transport more than 500 passengers every year.
- Small business ATOL: if you intend to sell fewer than 500 flights or vacations per year
- ATOL to ATOL trade sales: if you sell flights or vacation packages to other ATOL holders.
- Franchised ATOL: if you belong to a recognized travel trade organization and sell fewer than 1,000 flights or vacations every year.
Standard ATOL License
What is standard ATOL License?
In standard license there are no trading limitations. A bond of 15% of licensable revenue is required (subject to a minimum of £50,000). Personal fitness and competence assessment. Financial conditions for Standard ATOL must be met. For limited corporations, a minimum paid-up share capital of £30,000 is required.
How to apply for Standard ATOL license?
You can download the form from here.
What are the charges?
- £2073 application fee plus variable 13.01 pence per passenger charge.
Documents Required
- You will be needed to give numerous documents as necessary uploads in the application form to support your application, which are summarized below. You will be unable to progress through the form and submit it without them.
- A thorough CV, a copy of a recent utility bill/bank statement, and a certified copy of the passport photograph page for each person specified on the form.
- Copy of certificate of incorporation
- Copy of Memorandum of Articles and Association
ATOL to ATOL trade sales (Trade ATOL Licence)
What is ATOL to ATOL trade sales?
These Sales are only available to other ATOL holders. Personal fitness and competence evaluation. ATOL standard financial criterion test. Bond of £10,000 is required.
How to apply?
- You can apply here.
What are the charges?
- £2073 application fee plus variable 13.01 pence per passenger charge.
Documents Required
- You will be needed to give numerous documents as necessary uploads in the application form to support your application, which are summarized below. You will be unable to progress through the form and submit it without them.
- A thorough CV, a copy of a recent utility bill/bank statement, and a certified copy of the passport photograph page for each person specified on the form.
- Copy of certificate of incorporation
- Copy of Memorandum of Articles and Association
Franchised ATOL
What is franchised ATOL?
If you are a member of a recognized travel trade organization and sell fewer than 1,000 flights or vacations each year, you may qualify. Licenses are awarded based on membership in an approved franchise consumer protection scheme. Personal fitness and competence evaluation. There is no ATOL bond. There is no financial criterion exam.
How to apply?
- You can apply here.
What are the charges?
- The application fee is £780. (For under 1,001 passengers).
- Processing time: 8 weeks
Documents required
- You will be needed to give numerous documents as necessary uploads in the application form to support your application, which are summarized below. You will be unable to progress through the form and submit it without them.
- A thorough CV, a copy of a recent utility bill/bank statement, and a certified copy of the passport photograph page for each person specified on the form.
- Copy of certificate of incorporation
- Copy of Memorandum of Articles and Association
- Corporations that have not yet filed their year-end accounts (except those applying for Franchise ATOL up to 1,000 passengers).
- Corporations that have previously filed year-end accounts (except those applying for Franchise ATOL up to 1,000 passengers)
- Certified statement(s) outlining each firm owner’s personal assets and liabilities as of the same date as the starting balance sheet.
- A copy of the most recent year-end accounts, including business and accountants/auditors reports that have been signed and dated.
- Certified statement(s) documenting the personal assets and liabilities of each firm owner as of the same date as the most recent accounts.
- Cash flow, profit and loss, and balance sheet predictions till the end of the next/first fiscal year.
Who offers Franchise ATOL?
1. ABTOT Limited
Address: 117 Houndsditch
London EC3A 7BT
Telephone: 020 7065 5311
Email: [email protected]
Website: https://www.abtot.com/
2. Advantage Travel Centres Ltd
Address: 21 Provost Street
London N1 7NH
Telephone: 020 7324 3931
Email: [email protected]
Website: http://advantagemanagedservices.com/
3. Protected Trust Services
Address: 307-315 Holdenhurst Road
Bournemouth
BH8 8BX
Telephone: 0207 190 9988
Email: [email protected]
Website: http://www.protectedtrustservices.com/
4. Travel Trust Association (TTA)
Address: Albion House
3rd floor, High Street, Woking, Surrey GU21 6BD
Phone: 0870 8890577
Email: [email protected]
Website: http://www.traveltrust.co.uk/
Small ATOL License
What is small ATOL License?
If you intend to sell fewer than 500 flights or vacations per year. Restricted to 500 passengers and £1,000,000 in licensable income each year for a minimum of three years. A £50,000 bond is required. Personal fitness and competence evaluation. Financial requirements of the SBA must be met. For limited corporations, a minimum paid-up share capital of £30,000 is required. A £1,250 APC deposit is required.
How to apply?
- You can apply here.
What are the charges?
- £1223 application fee.
Documents required
- You will be needed to give numerous documents as necessary uploads in the application form to support your application, which are summarized below. You will be unable to progress through the form and submit it without them.
- A thorough CV, a copy of a recent utility bill/bank statement, and a certified copy of the passport photograph page for each person specified on the form.
- Copy of certificate of incorporation
- Copy of Memorandum of Articles and Association
ATOL licence helpdesk – new applicants
Email: [email protected]
Telephone: 020 7453 6361
Fax: 020 7453 6494
How to check / find if a travel company / agency / operator is ATOL protected?
Look for the ATOL logo in your tour operator’s brochures, advertisements, and websites to ensure your holiday is insured. If ATOL protection is available, your tour operator or travel agent should be able to tell you. Your travel company is required to provide you with an ATOL Certificate that explains how your vacation is secured.
How to check for ATOL protection?
Check to see if a travel company is still an ATOL holder.
- Check using https://www.caa.co.uk/atol-protection/check-an-atol/search-atol-holders/
- Search by ATOL number, registered business name / trading name
For more details, visit here