How do Travel Bonds work?
A Travel Bond is a recognised form of security. Travel Bonds by Insurance tend to be unsecured meaning other business assets are not-tied-up as they would be normally to guarantee a bank bond.
t&g Travel Bonds are an accepted form of insolvency protection for the following organisations:
- ABTA and ABTOT (including the BCH scheme) who are appointed by the Government to oversee the bonding process as required in the 2018 Package Travel Regulations for Travel organisers who arrange non-flight packages.
- ATOL who require Bonds for their Standard ATOL and Small Business ATOL licences*
- The Commission for Aviation Regulation (CAR) who administer the scheme of insolvency protection in Ireland for Travel Organisers.
*t&g provide travel bonds for the ABTOT ATOL Franchise
Travel bonds are also used as payment protection guarantees and are required by the following organisations:
- International Air Transport Association (IATA) can require guarantees for Travel Agents:
- To become IATA Accredited
- Have access to IATA airlines with a single Sales Agency Agreement
- Have access to IATA’s Billing and Settlement Plan (BSP),
- Airlines who operate in the UK can require their IATA agents to provide a payment protection bond/guarantee
- Rail Settlement Plan (RSP) requires accredited Rail Agents to provide a bond to guarantee payment.
- Ferry and Coach Operators may require their Travel Agents to provide a payment protection bond/guarantee
Travel Bonding by t&g is practical and straightforward and the costs compare favourably with other financial protection solutions.
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