AABTA ended its consumer promise in 2006. This means that not all of the travel arrangements that you book through an ABTA member are necessarily protected in case of the financial failure of the travel company.
You will need to ask the ABTA member how financially secure their travel arrangements are. If the arrangements are not automatically protected, the ABTA member may be able to offer suitable insurance to cover you.
If you book with a Travel Trust Association member your money is 100% financially protected. This is achieved in two ways.
Every Travel Trust Association member deposits your money into the trust account. A trust account is a bank account designated to hold the customers' money.
Your money remains in the trust account and is supervised by an appointed trustee who is either a banker, chartered or certified accountant or a solicitor. Both the Travel Trust Association members AND the Trustee are required to authorise payments from the Trust Account.
In addition to being held in trust, your monies are also insured.
A Stand Alone Safe Seat Plan policy is an insurance policy which is issued on your behalf by the Travel Trust Association member. If your money is not in the Trust Account, the Stand Alone Safe Seat Plan policy will reimburse the loss of any amount paid to a Travel Trust Association member up to the value of £11,000 per passenger.
It is the combination of the Trust Account and the Stand Alone Safe Seat Plan that ensures all of the money which you have paid to a Travel Trust Association member is safely protected and available to pay for those services which you have booked.
Please be aware that this is NOT a travel insurance policy. The Stand Alone Safe Seat Plan will only protect the money that you have paid to a Travel Trust Association member. You will need to take out a seperate travel insurance policy to provide cover for cancellation, medical expenses and lost baggage etc. The Travel Trust Association member will be able to provide you with a travel insurance policy.