Using a non-ABTA licensed travel company

Bodkin64

Hi, hope this is the right board for this question. We’re looking to book a short touring holiday in Iceland in a few weeks time. We’d usually arrange these things DIY however Iceland being a country we know less about I’d prefer to book a package with an operator. There are a number of apparently fairly reputable companies (many Icelandic) who offer self-drive packages without flights which sound interesting, however as far as I can tell, many of them are not ABTA (or any overseas equivalent) licensed. That makes me a bit uneasy, however if I choose my travel insurance carefully, should we still be able to get ourselves the same level of protection with one of these companies as we would with an ABTA-licensed one? Or should we avoid suitably licensed companies at our peril? Thanks

Westin

I think the financial protection you are seeking is ATOL and that would be normally availability if you booked and air inclusive package with a UK based travel organiser.  The arrangement becomes ATOL protected once you book the flight and at least one other holiday component together at the same time, such as flight and hotel, or flight and car rental.

As an example if you booked flight only to Iceland with Easyjet, then the tour with a local Icelandic company - no ATOL cover.  If you booked on to the same flights and the same tour (if they feature it) with EasyJet Holidays then you would get ATOL protection.

In the event of the financial failure of the business the CAA’s ATOL scheme will refund amounts paid.

For non-flight inclusive holidays then some industry associations for UK travel organisers may offer bonding schemes and trade and consumer support services -  ABTA is one such (as are TTA, AITO).

If just using and booking via an Icelandic travel operator, it would be wise to pay with a credit card which gives you some other financial protection.

Bodkin64

Westin said:

I think the financial protection you are seeking is ATOL and that would be normally availability if you booked and air inclusive package with a UK based travel organiser.  The arrangement becomes ATOL protected once you book the flight and at least one other holiday component together at the same time, such as flight and hotel, or flight and car rental.

As an example if you booked flight only to Iceland with Easyjet, then the tour with a local Icelandic company - no ATOL cover.  If you booked on to the same flights and the same tour (if they feature it) with EasyJet Holidays then you would get ATOL protection.

In the event of the financial failure of the business the CAA’s ATOL scheme will refund amounts paid.

For non-flight inclusive holidays then some industry associations for UK travel organisers may offer bonding schemes and trade and consumer support services -  ABTA is one such (as are TTA, AITO).

If just using and booking via an Icelandic travel operator, it would be wise to pay with a credit card which gives you some other financial protection.

I was aware that ATOL covered packages including flights, however given I haven’t found any operators that offered any such suitable packages, that didn’t seem applicable. My question related more to the relative merits of a company such as Trailfinders, who offer various self drive packages without flights and are ABTA licensed, and other local ones that aren’t. Does ABTA actually provide that much, which can’t be offered by (say) credit card financial protection or travel insurance?

Westin

ABTA used to have a members bonding scheme but I don’t think it is obligatory anymore for the bonding to be set via them. Agents can bond in other ways like trust funds. They must however have a scheme to protect client’s money.

ABTA do hold their members to certain industry standards and there is a complaints scheme and help line for consumers if troubles arise.

UK travel firms will also have set standards of liability and have certain accountability standards. Worth checking if the Icelandic operator offers the same.  I think they play to EU rules so you should be okay.

Trailfinders are a reputable UK based travel organiser who have their own scheme of bonding and protecting client’s money. They also have a good reputation for looking after customers and being an easy point of contact.  Reviews from customers always seem very positive.

Bodkin64

Westin said:

ABTA used to have a members bonding scheme but I don’t think it is obligatory anymore for the bonding to be set via them. Agents can bond in other ways like trust funds. They must however have a scheme to protect client’s money.

ABTA do hold their members to certain industry standards and there is a complaints scheme and help line for consumers if troubles arise.

UK travel firms will also have set standards of liability and have certain accountability standards. Worth checking if the Icelandic operator offers the same.  I think they play to EU rules so you should be okay.

Trailfinders are a reputable UK based travel organiser who have their own scheme of bonding and protecting client’s money. They also have a good reputation for looking after customers and being an easy point of contact.  Reviews from customers always seem very positive.

Thanks for the advice. We might still use Trailfinders as I know they’re good. They’re expensive, though for good reason. They don’t offer quite what we were looking for but perhaps one of their packages could be tailored.

Bodkin64

We’ve decided to go elsewhere on this occasion, and put off visiting Iceland to plan the perfect itinerary with rather more notice - probably with Trailfinders. But thanks for the help.