AITO has launched a new financial protection scheme following calls from members for a replacement to the AITO Trust, which closed in 2013 due to operational challenges.
Designed for small and medium-sized businesses, AITO Financial Protection Services (AFPS) will offer cover for non-licensable (non-flight) packages and single components, such as accommodation-only, through bonds and shortfall insurance.
Members will be able to apply for AFPS from 1 July 2025, for financial protection starting from 1 September 2025.
The new scheme, which took three years to reach approved body status with the Department for Business & Trade, is a wholly-owned subsidiary of AITO.
Executive Director Martyn Sumners said: “It will be a game-changer for AITO members and prospective AITO members – a scheme tailored precisely to SME travel companies’ needs, administered by the AITO team, who they know and trust.”
AITO Head of Industry Christina Brazier, who previously spent 15 years with the Civil Aviation Authority ATOL scheme, said that, thanks to AITO’s status as a not-for-profit association, it was able to ‘act in the best interests of its members’.
“In response to calls from our SME members for greater choice in financial protection, we’re delighted to introduce a new, tailored option that delivers a cost-effective solution, competitive with existing schemes,” she added.
An AITO spokesperson said that, since the Association already has financial information on its members, via regular monitoring, it is likely to be able to offer a ‘speedier’ and ‘more friendly’ process towards achieving financial protection.
The trade association is encouraging members to have a chat with its team before applying, while non-AITO members can apply for AITO and AFPS membership simultaneously.
In the future, AITO is hoping to develop a range of financial services to benefit its SME members.
