Only in some cases and usually only if you do not receive a valid flight ticket once you paid for the flight. If you book a flight with an ATOL holder (either direct or through a travel agent) and you get an ATOL Certificate as soon as you make payment, your booking is protected if the ATOL holder fails and the ATOL holder is also obliged to offer a refund should the airline that you are booked with fail financially.
Remember though, if you are not ATOL protected and you book with a travel agent, make sure you receive your airline tickets as soon as you pay. That way, should the agency fail, the airline should honour your booking. In these circumstances you are not directly protected against the chance of the airline that you are booked with failing, so you should check whether any travel insurance that you have includes it, and, if not, consider taking out additional cover.
Travel agents often act as agents for a number of businesses, including ATOL holders. When you book an ATOL protected air holiday with an agent it must tell you which ATOL holder is protecting your travel arrangements, and provide an ATOL Certificate when you pay.
If you book just a flight, the agent must either issue you with a ticket straightaway or confirm your ATOL protection.
Not usually, unless your holiday is sold as a package and you receive an ATOL Certificate confirming this. If you purchased the flight element of your trip with an ATOL holder this part may be protected.
LTA's are formed when a business “facilitates” the sale of two or more travel services (e.g. a flight and hotel booking) but does so in a way that it is not classed as a package.
As an LTA does not constitute a package it does not, need to be protected under ATOL. However, an LTA may include an ATOL protected element within it, such as an ATOL protected Flight-Only or an ATOL protected flight inclusive package.
If a travel business offers LTAs, it must inform you that this is the case and what protection you may have.
Yes. Your travel business must find you alternative flights or refund your money.
If your return flight is cancelled while you are on holiday, your travel business must book you onto an alternative flight.