From October 2009 consumers will find that the ATOL protection contribution will increase to £2.50 per person, you should find this on your holiday price breakdown. The rate at the moment is £1 and is put into the air travel trust fund, so that if the airline or travel company goes bust, you’ll be protected.

Clarification on booked holidays

At the moment I am not sure how you pay the additional £1.50 if you have booked a holiday already for travel after the 1 October, or if, it is for bookings after this date. I could not find this information available looking on the ATOL website, so if you know, please leave a comment.

ATOL protection contribution confusion

I am assuming that this contribution is only for consumers that have booked a flight with an ATOL bonded agent. The Daily Mail reported that the charge is for holidaymakers travelling by air, but surely if you book direct with a low cost flight then you do not pay the ATOL protection contribution.

Maybe someone could confirm because I didn’t find the Daily Mail article that helpful.

Feel safer booking with ATOL bonded agent

As a consumer I do not mind paying a few pounds if it means I am protected when booking a holiday with an ATOL bonded agent, but what I would not want to see is this contribution rate increasing year after year if more companies and airlines go into administration.

Your thoughts on the ATOL increase

At the moment the £2.50 ATOL protection contribution is cheaper than taking out scheduled air failure insurance so for consumers I do not think it is an issue. I am interested to hear your responses to the news, either as a consumer or someone from the travel industry.

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