Package Holidays are legally protected by the Package Holiday Regulations which require all flight based holidays to be ATOL protected.
Package Holidays not including a flight must be protected in one of three ways:
A bond held by one of the following organizations: ABTA, the Association of Independent Tour Operators (AITO), the Confederation of Passenger Transport (CPT), the Passenger Shipping Association (PSA) or the Association of Bonded Travel Organisers Trust (ABTOT); or
An insurance policy; or
A trust account
OTS acts as an agent for ALL Package Holiday principals and so our clients monies are safeguarded be they associated with ATOL approved operators via the CAA (Civil Aviation Authority) or by ABTA. It is emphasised that if a package organiser fails whilst you are on holiday then you will be brought home without extra expense. Likewise, if a deposit or full payment has been paid to a properly licensed package organizer who fails prior to your holiday then, once again, your monies are totally protected.
Your Financial Protection
When you buy an ATOL protected flight or flight inclusive holiday from us you
will receive an ATOL Certificate. This lists what is financially protected, where
you can get information on what this means for you and who to contact if things
The suppliers identified on your ATOL Certificate will provide you with the
services listed on that ATOL Certificate (or a suitable alternative). In some cases,
where the supplier is able to do so for reasons of insolvency, an
alternative ATOL holder may provide you with the services you have bought or a
suitable alternative (at no extra cost to you). You agree to accept that in those
circumstances the alternative ATOL holder will perform those obligations and you
agree to pay any money outstanding to be paid by you under your contract to that
alternative ATOL holder. However, you also agree that in some cases it will not be
possible to appoint an alternative ATOL holder, in which case you will be entitled to
make a claim under the ATOL scheme (or your credit card issuer where applicable).
If the suppliers identified on your ATOL certificate, are unable to provide
the services listed (or a suitable alternative, through an alternative ATOL holder or
otherwise) for reasons of insolvency, the Trustees of the Air Travel Trust may
make a payment to (or confer a benefit on) you under the ATOL scheme. You
agree that in return for such a payment or benefit you assign absolutely to those
Trustees any claims which you have or may have arising out of or relating to the
non-provision of the services, including any claim against us, the travel agent (or
your credit card issuer where applicable). You also agree that any such claims may
be re-assigned to another body, if that other body has paid sums you have claimed
under the ATOL scheme.
The only financial protection available here depends entirely on the booking conditions of those principals involved. These will vary from a 5 star luxury hotel level to a rather more humble bed-bank situation. Clearly, the outcome is questionable other than to state that OTS will always protect the interests of our clients whilst at the same time acting as responsible agents for the approved principals we represent.