What is ATOL protection & why it matters for your cruise
Earlier this year, Jetline Holidays went into administration, leaving thousands of holidaymakers unsure about refunds and future travel plans. It was a reminder of how important financial protection is when booking a trip – especially a cruise that might involve flights, hotels and other extras.
One of the key forms of protection available to UK travellers is ATOL. But what exactly is it, and how do you know if you’re covered? Here’s what you need to know about ATOL, why it matters for cruise bookings and what to do if your trip isn’t protected.
ATOL in a nutshell
- ATOL (Air Travel Organiser’s Licence) is a financial protection scheme run by the UK’s Civil Aviation Authority (CAA)
- It covers most air-inclusive holidays sold by UK travel companies
- If the company goes bust, you’ll get a refund or be brought home
- Cruises with flights included in a package are usually ATOL protected
- If you book flights separately or only book the cruise, ATOL may not apply
- Always check for your ATOL certificate when booking
What is the ATOL scheme?
The ATOL scheme is designed to protect UK travellers when booking flight-inclusive holidays. If your travel provider goes under, the scheme steps in so you don’t lose your money – or get stranded abroad. ATOL is run by the Civil Aviation Authority and applies to most flight-inclusive overseas holidays sold by UK-based travel companies. That includes many cruise packages.
Origins of the ATOL scheme & the role of the CAA
ATOL was introduced in 1973 and gained more attention in the 2000s following a wave of high-profile travel company collapses. The failure of companies like XL Leisure in 2008 and lowcostholidays in 2016 left tens of thousands out of pocket – or stuck abroad with no flight home.
In response, the CAA tightened ATOL rules. Today, UK travel companies selling flight-inclusive holidays must be licensed under ATOL and contribute to a central protection fund. This fund is used to refund travellers or repatriate them if something goes wrong. It’s paid for by a £2.50 charge included in the cost of every ATOL-protected trip.
ATOL in action: the collapse of Thomas Cook
One of the biggest ATOL interventions happened in 2019 when Thomas Cook collapsed. At the time, it was one of the oldest and most recognised names in travel.
More than 150,000 people were stranded abroad, and hundreds of thousands more had future holidays cancelled. Because most bookings were ATOL protected, the CAA could refund customers and charter flights to bring people home, a massive undertaking known as Operation Matterhorn. The event proved how crucial ATOL can be when a major travel company fails.
What to look for – CAA listing and ATOL certificate
Before paying any money, visit the CAA website to check whether the travel company you want to book with is an ATOL holder.
When you book an ATOL-protected cruise or holiday, you should receive an ATOL certificate as soon as you’ve paid – even if it’s just a deposit.
This document confirms what’s protected, who your travel provider is and what to do if things go wrong. Keep it safe and double-check the details. If you don’t receive one, ask why – it could mean your booking isn’t protected.
Why it matters when booking a cruise
Cruises can be complicated. Some are sold as packages with flights, transfers and hotels included. Others are cruise-only or involve booking flights separately. That makes ATOL protection even more important – and sometimes harder to understand.
Which cruise bookings are covered by ATOL?
Generally speaking, if you book a cruise with flights included through a UK-based travel company, it should be ATOL protected. This is especially true for packages where the company pulls together the cruise, flights and other services for you.
If your ATOL certificate lists everything you’ve booked – flights, cruise, hotel, transfers – and your travel company holds an ATOL licence, you’re covered.
Which cruise bookings are NOT covered by ATOL?
If you book the cruise and flights separately – for example, booking a cruise directly with the cruise line and then sourcing your own flights – that’s not usually ATOL protected. If the airline goes bust or your flight is cancelled and you miss your cruise, you’re on your own.
Cruise-only bookings from UK ports don’t involve flights, so they fall outside the ATOL scheme. These trips are usually protected by ABTA instead, which offers a different type of financial protection.
Also, watch out for travel companies based outside the UK. They might not be required to offer ATOL protection, even if they sell flights to UK customers.
What to do if your cruise isn’t ATOL protected
If your booking isn’t covered by ATOL, don’t panic – but do take some precautions.
- Use a credit card: Booking with a credit card offers protection under Section 75 of the Consumer Credit Act for purchases over £100.
- Get good travel insurance: Make sure your policy includes coverage for airline failure, missed departures and cruise-specific issues.
- Book with reputable companies: Look for ABTA membership or check whether the company has financial bonding through other schemes.
- Keep all documents: Save receipts, booking confirmations and any communications in case you need to claim later.
ATOL protection isn’t the most exciting part of booking a cruise, but it’s one of the most important. It can mean the difference between a refund and a lost deposit if your travel provider goes under.
So, before you book, check who you’re buying from, see if your trip includes flights and make sure you get your ATOL certificate. It only takes a minute, but it could save your whole holiday.
