UKThe tour operator went bust during my holiday. Am I protected?
Yes, you are likely protected if your holiday was an ATOL-protected package or flight-plus arrangement, meaning you’re entitled to a refund or repatriation.
What the Law Says
UK law requires most package holidays and flight-plus arrangements sold by UK-based travel companies to be financially protected under the ATOL (Air Travel Organisers’ Licensing) scheme, run by the Civil Aviation Authority (CAA). This protection kicks in if the operator fails while you’re abroad.
ATOL protection applies automatically when you book a package holiday (e.g., flight + hotel) or a ‘flight-plus’ arrangement (e.g., flight + car hire or accommodation booked within 24 hours) from a UK business licensed by the CAA.
If the operator collapses while you’re travelling, ATOL guarantees either: (a) continuation of your holiday (e.g., through alternative accommodation or flights), or (b) full refund if you haven’t travelled yet — or (c) free repatriation if you’re already abroad.
The scheme is funded by a £2.4 billion financial protection fund, backed by contributions from licensed operators.
Statutory TextEvery licensee must make provision for the proper performance of its obligations to customers in the event of its insolvency.
— Civil Aviation Act 1982, s. 110A(1) — Duty to secure customer payments
Statutory TextWhere a licensee becomes insolvent… the Authority may make such arrangements as it considers appropriate for the purpose of securing that customers are not prejudiced.
— Civil Aviation Act 1982, s. 110B(1) — Powers on insolvency
What to Do
Immediately contact the CAA’s ATOL team via atol.caa.co.uk or call 0333 103 6372 — do this even if you’re still abroad.
Keep all booking confirmations, ATOL certificates (usually emailed), and receipts — these prove your protection status.
If abroad, follow instructions from the CAA-appointed ‘rescue agent’ (e.g., Hays Travel or another appointed firm) for accommodation or flights home.
If you’ve returned home and haven’t been contacted, claim a refund online at caa.co.uk/atol/claim within 28 days of the operator’s collapse.
If your booking wasn’t ATOL-protected (e.g., separate flight + hotel booked weeks apart), check if your credit card provider offers Section 75 protection (for purchases over £100).
Sources
Same Question, Other Jurisdictions
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South KoreaNot legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.