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Financial Protection

Travel financial protection consultancy services that get you straight to what you need.

We want to get to know you: it’s part of our service.

As a new or existing travel company, knowing what travel arrangements need to be financially protected under English law can be a headache to say the least. Our consultants’ years of experience and knowledge will ease that burden allowing you to spend time where it’s better spent.

The Package Travel, Package Holidays and Package Tours Regulations 1992 and the Civil Aviation (Air Travel Organiser’s Regulations) 2012 require travel companies to provide security from their insolvency for the money that consumers pay for certain combinations of travel arrangements. Broadly speaking, the effect of these two pieces of legislation taken together mean that travel arrangements sold as a ‘Package’ require travel financial protection whether or not they include a flight. Packages including a flight, and flights sold with accommodation or self-drive care hire (‘Flight Plus’) will require the seller to hold an Air Travel Organiser’s Licence as well as to carry financial protection.

So how can companies provide this travel financial protection?
Travel Trust Account

Travel Trusts are increasingly favoured over bonding or insurance policies as a means of providing the financial protection that the law requires travel companies to have in place. Why?

  • They represent a reduced risk of over-trading on a bank or other guarantee.
  • They are well liked by merchant services providers
  • Alternative arrangements are often expensive
  • They don’t require an annual renewal
  • They are capable of being a single type of financial protection for all and any combination of travel services.
  • They provide ease of administration following failure
  • They are secure

 

Our sister-brand: Serenity Travel Trusts is a recognised and CAA approved provider of trustee services to the travel industry.

Travel Bond

A travel bond takes away the cash flow restrictions that a travel trust account can represent for some travel companies. UK legislation requires that bonding be linked to the membership of a trade organisation such as ABTA or ABTOT. After the initial application, there isn’t much more to do other than to pay the premium every year. We have access to bond brokers that offer a fast turnaround, will consider any travel related bonds and are highly competitive on quotes.

Financial Failure Insurance

Where a trade organisation bond isn’t appropriate an insurance policy may be a good alternative. A proposal would be based on the provision of satisfactory trading history or business plan (for a newly incorporated company). There are a number of financial failure and passenger protection insurances available on the market, and we are familiar with all of them. Our independence in the market allows us to assess which scheme is best for your business.