What is financial protection – and why is it so important for your holiday?
But in all that excitement, there’s one thing many people forget to think about: financial protection.
Yep, not the most glamorous topic, we know. But it’s absolutely essential to making sure your holiday stays as stress-free as possible — before, during, and after you travel.
So, what is financial protection? And do you really need it if you’ve already got travel insurance or paid by credit card? Let’s break it down.
Why Financial Protection Matters When you book a holiday, you’re investing time, money, and a lot of excitement. Financial protection gives you peace of mind that if something goes wrong — like your travel provider going out of business — your money (and your trip) is safe.
Unfortunately, many travellers don’t find out what kind of protection they have until they need it — and by then, it can be a bit too late.
What is ATOL and Why Should You Care? You’ve probably seen the word ATOL on travel websites or booking confirmations, but what does it actually mean?
ATOL (Air Travel Organiser’s Licence) is a UK government-backed scheme that protects holidaymakers when booking a package holiday with flights. It’s run by the Civil Aviation Authority (CAA), and it’s designed to make sure you’re not left stranded if your travel company stops trading.
If your travel company goes bust before your holiday, ATOL ensures you’ll get a full refund. If they go under while you’re away, ATOL covers your return travel — so you can get home safely, without spending a penny more.
?? Tip: You’ll always get an ATOL certificate when you book a protected holiday. Keep it safe – it confirms exactly what’s covered and how to claim if needed.
ATOL vs ABTA: What’s the Difference? They sound similar, but they’re not the same.
ATOL covers package holidays that include flights.
ABTA (Association of British Travel Agents) supports holidays without flights — like cruises, coach or rail trips.
ABTA also offers guidance and dispute resolution, but unlike ATOL, its protection is voluntary. Some travel companies use other trusted forms of protection like independent trust accounts — which are just as safe (we’ll come to that later).
What If I Paid by Credit Card? Good question. If you paid with a credit card, you might be protected under Section 75 of the Consumer Credit Act. That means you can potentially claim your money back from your credit card provider if your travel company fails.
To qualify:
The total holiday cost must be between £100 and £30,000.
You don’t need to have paid the full amount on the card — a deposit is often enough.
If you paid by debit card, many banks offer a chargeback scheme. It’s not a legal right like Section 75, but it can still help recover your money if things go wrong.
That said, if your trip is ATOL protected, always go through ATOL first. The card route is a good backup if needed.
Doesn’t My Travel Insurance Cover This? Not always. Travel insurance is great for things like cancellations, delays, medical emergencies, and lost luggage. But not all policies cover travel company failure.
Especially if you’ve booked your holiday DIY-style (flights, hotels, transfers all separately), it’s worth double-checking if your policy covers all the individual parts.
Is My Money Safe with Travel Counsellors? Absolutely. At Travel Counsellors, we take your protection seriously.
We hold an ATOL licence (number 6751), so any package holiday including flights is fully protected.
On top of that, we use an independent trust account to protect all bookings — even if your holiday doesn’t include flights.
This means your money is kept securely in the trust account and can’t be accessed until your travel arrangements are confirmed — offering you another layer of financial peace of mind.
It’s About More Than Just Protection Of course, financial protection is crucial. But we believe booking a holiday should feel exciting and completely stress-free from start to finish.
That’s why, at Travel Counsellors, we go the extra mile. From personal, one-to-one service to 24/7 customer support while you're away, we’re here to make sure your travel experience is smooth, safe, and unforgettable.
Final Thoughts Financial protection might not be the thing you’re dreaming about when planning your holiday — but knowing your hard-earned money is safe is priceless.
So whether you’re off on a beach break, city escape, cruise or adventure halfway around the world, make sure your booking comes with the peace of mind you deserve.
If you’re unsure about your protection or just want to chat through your options, feel free to get in touch. Your Travel Counsellor is here to help.
