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Agents selling a package holiday that has been created by a tour operator do not need ATOL protection as the operator remains liable if any problems occur.

However, they will need an ATOL licence if they decide to dynamically package a trip on behalf of their customers and flights are included as part of the sale.

When dynamically packaging holidays without flights, agents do not need ATOL protection but must have financial protection in accordance with the package travel regulations.

Agents should also be aware that, legally, they must ensure their customers are fully briefed on the type of holiday they have bought and what they are entitled to. For example, is there protection if any of the suppliers such as an airline or hotel group go bust?

In short, any agent even thinking of dynamically packaging holidays should seriously consider being covered by an ATOL licence. This will give the best form of protection, no matter what type of holiday an agent is considering selling.

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