• What is an ATOL and what does it do for me?
• How can I tell that my flight or holiday is ATOL Protected?
• What's special about an ATOL receipt?
• How can I check I'm ATOL protected before I book?
• What if I book By telephone?
• What about Internet bookings?
• Will an ATOL get me home if I'm abroad when my travel firm goes broke?
• Will I still get my holiday if the firm goes broke before I leave?
• Can an ATOL protect me if a scheduled airline goes bust?
• Aren't there any other ways of Protecting holiday bookings?

WHAT IS AN ATOL, AND WHAT DOES IT DO FOR ME?

"ATOL" is a protection scheme for flights and air holidays, managed by the Civil Aviation Authority (CAA). Most firms who sell air travel in the UK are required by law to hold a licence called an "ATOL".

ATOL protects you from losing money or being stranded abroad when a tour operator goes bust. All licensed firms have to lodge bonds with the CAA so that if they go out of business, the CAA can give refunds to people who can't travel and arrange for people abroad to finish their holidays and fly home.

ATOL protection is included in the price of a holiday booked with an ATOL-holder, and there's a Government-backed Fund called the Air Travel Trust that steps in if any ATOL bond isn't enough to look after everyone affected by a failure.

HOW CAN I TELL THAT MY FLIGHT OR AIR HOLIDAY IS ATOL PROTECTED?

The simple rule is "Ticket or ATOL". If you pay any money - even a deposit - to a travel firm in the UK for a flight or a package holiday by air, the sale usually has to be ATOL protected unless you get a scheduled air ticket straight away. A travel agent may not have its own ATOL but it must book you with a firm that does hold one, and tell you which ATOL you're protected by. And as soon as you pay any money, it must give you a special "ATOL Receipt".

The exceptions to the "Ticket or ATOL" rule are -

• It doesn't apply if you book direct with an airline, rather than with a travel firm - your booking won't be ATOL protected.
• If you book from outside the UK, you probably won't be ATOL protected.
• If you buy a scheduled airline ticket from a travel agent that is part of a chain, there may be a short delay while it obtains your ticket from a central office, and there is a legal dispensation allowing it to do this. This doesn't apply to discounted tickets or packages.

WHAT'S SPECIAL ABOUT AN ATOL RECEIPT?

If a travel agent gives you a receipt for your money with just its own name on it, you may not have any security if it goes bust. An ATOL Receipt gives the name of the licensed firm you're booked with, and its ATOL Number. It must honour your booking even if the agent goes out of business. Should it go bust itself, you'll be protected by ATOL.

HOW CAN I CHECK I'M ATOL PROTECTED BEFORE I BOOK?

Look for the ATOL logo in adverts and brochures. If you can't see an ATOL number or logo, either check with the CAA by telephone whether the firm has an ATOL, or visit the ATOL web site

Travel agents often sell for a range of ATOL holders. If you book through an agent, ask which ATOL holder will appear on your ATOL Receipt. Don't book if the agent won't tell you.

If you buy an air package from an agent that isn't from an ATOL-holder's brochure, ask whether all the items you book will be on the ATOL Receipt - if a hotel or car hire is receipted separately, that it won't be ATOL protected.

WHAT IF I BOOK BY TELEPHONE?

The "Ticket or ATOL" rule still applies - before you give your card number, ask if your ticket will be sent to you straight away. If it won't, ask if you're protected by ATOL, and the name and ATOL number of the ATOL holder. If you aren't promised your ticket straight away, and there's no ATOL protection, don't book.

When you book by telephone, firms are obliged by law to tell you whether:

• they can issue and send your ticket immediately
• they have their own ATOL - they must confirm their name and ATOL number,
• Or, if they're an agent for an ATOL holder, which one.

They also must send you your documents - your ticket or your ATOL Receipt - within 72 hours of taking your booking.

WHAT ABOUT BOOKINGS MADE THROUGH THE INTERNET?

The same rules apply as for telephone bookings - make sure that you know who you're dealing with, and when your tickets will be sent to you. If they won't be sent immediately, look for the name of the ATOL holder and its ATOL number. You can check the number on the ATOL web site

The ticket sent to you after an Internet (or telephone) booking with a scheduled airline may not be quite the same as a paper scheduled airline ticket - it may be an "e-ticket" or a confirmation from the airline, but it has the same effect. For bookings covered by ATOL you should still get a paper confirmation.

WILL AN ATOL GET ME HOME IF I'M ABROAD WHEN MY TRAVEL FIRM GOES BROKE?

Yes. Additionally if you've booked a package tour, we'll pay for your hotel and other things included in the package price, so you can enjoy the rest of your holiday and come home as planned.

WILL I STILL GET MY HOLIDAY IF THE FIRM GOES BROKE BEFORE I LEAVE HOME?

If you've booked just a flight, and you have a scheduled airline ticket, you can still travel. For packages, you'll usually get a refund instead.

But if your holiday has to be cancelled, some travel agents may be willing to give you another one without payment - they'll ask you instead to fill in a form so that we can pay your refund to them.

CAN AN ATOL PROTECT ME IF A SCHEDULED AIRLINE GOES BUST?

Yes, in some cases. If you book a scheduled flight with a travel firm and don't get your ticket straight away, your booking should be protected by ATOL. Check as usual for the ATOL number.

If your booking is protected by ATOL, you'll usually be covered if the airline fails - so you'll have better cover than if you book direct with an airline or you get your ticket straight away. You may be asked to pay a small premium for this extra protection.

An ATOL holder can opt out of providing cover for scheduled airline failure, but only if it clearly tells you before you book that you're not covered for this.

AREN'T THERE OTHER WAYS OF PROTECTING HOLIDAY BOOKINGS?

Yes - but they may not cover as much as you think.

• Some trade associations like ABTA have bonding schemes, but these concentrate on non-air holidays like coach and ferry packages, and on protection against travel agent failure.
• ATOL is the only scheme for flights and air holidays sold by tour operators in the UK.
• Paying by credit card may protect you in some cases, but not if the card used is a debit or charge card and (usually) not if your payment is made to a travel agent.
• ATOL is the UK's biggest travel protection scheme by far. It protects 28 million people every year, and it covers virtually all flights and holidays sold by travel firms in the UK.