For over 40 years the ATOL Scheme has provided financial protection to holidaymakers booking air holiday packages.
However, in recent years the market has changed significantly; the rise in sales of flights and overseas holiday
accommodation on the internet means that more people are booking their holiday components separately. Many travel firms
now sell holiday components in this way, creating holidays which until 2012 were not covered by ATOL protections as
they did not meet the traditional regulatory definition of a package holiday, even though many consumers believed they
were booking a package.
The Government recognised the need to update the ATOL Scheme to bring it into line with new trade practices and
provide clarity when customers book what appears to be a package holiday. The ATOL Regulations were therefore changed
on 30 April 2012, introducing 5 main changes:
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