AITO TRUST

Bonding was introduced to the British tour operating industry in 1970 by the Tour Operators' Study Group (TOSG - now renamed the Federation of Tour Operators), an organisation representing most of the largest companies in the UK travel industry.  Two years later, similar measures for the provision of financial guarantees were imposed as a compulsory requirement for all members of ABTA. The following year, the bonding principle was extended when the government of the day introduced the current ATOL system, administered by the CAA, involving all organisers of air-based package  holidays, firstly by charter and subsequently, by scheduled services.

The AITO Bonding Scheme
Set up in 1990, shortly before the abolition of ABTA's 'Stabiliser' and the introduction of the EC Directive on Package Travel, which led to a widening in the scope of bonding, AITO Trust is responsible for monitoring the financial performance of member companies not already covered by the ABTA scheme. Approved by BIS, the Trust (which is available exclusively to AITO members) offers full financial protection to customers of AITO-bonded companies. The arrangements exist solely to provide bonding for non-licensable activity, i.e. holidays using coach, rail, self-drive or any other non-air-based transportation. The Trust which is administered by Travel & General Insurance, processes applications and renewals, sets bond levels and collects premiums.