Aito, which currently has just over 100 tour operators and 300 agents as members, has launched the Aito Financial Protection Scheme (AFPS), which protects customers booking package holidays that do not include flights, as well as single holiday components if required.
The move is the end of a three-year process that saw Aito secure permission from the government to become an “approved body” in November 2024. It is only the third travel association to acquire this status – Abta and Abtot are the other two.
Aito now plans to expand its financial services to include protection for pipeline money, which flows between agents and operators, and also offer Atol coverage to members.
Martin Garland, Aito’s deputy chair, told TTG that the move came after members called for a new financial protection scheme, along the lines of the Aito Trust, which was discontinued in 2013 due to “operational challenges”.
“This is borne out of the Covid experience that members had of obtaining financial protection,” he added. “Members said they really wanted something reintroduced along similar lines to the Aito Trust.
“When the Aito Trust ended we lost a lot of members so we see this as being a key benefit helping to drive new members into the association.”
Christina Brazier, Aito’s head of industry affairs, said: “This gives us a foundation for the future and is a service we can expand to offer whatever benefits our members are looking for.
“We don’t want to create a race to the bottom. We’re delivering cost effective, competitive solutions, which we can do as a not-for-profit organisation.
“Pipeline monies are on the list of priorities as the options are really limited for operators and agents. We’re in discussions and we hope to offer it within the next year.”
Currently, Abta provides pipeline money protection but this requires both the operator and agent to be members of the association.
Brazier said Aito planned to continue building its financial services to offer “one solution” for SMEs, which the association hopes will encourage more companies to become members.
The AFPS scheme covers non-flight packages through bonds and “shortfall” insurance. Aito members can apply for the scheme from 1 July for financial protection from 1 September.
“It’s the start of the journey – we’ve built the foundation, infrastructure and the key financial protection,” said Garland. “It’s now seeing what other things we can add in the next phase of the process.”
