Aito, The Specialist Travel Association, says confirmation of regulatory approval for it to provide financial protection to members will be “integral” to its future growth.
The association announced it had been granted approved body status by the Department for Business and Trade (DBT) during its annual overseas conference last week.
It marks the end of a two-year process and makes Aito only the third travel industry association to have approved status with the DBT, alongside Abta and Abtot.
Announcing the news, chairman Chris Rowles said: “It’s been a long and arduous journey [but] we want to provide protection for our members in the future.”
Approval was granted on November 1 but details are still being finalised before the service can be rolled out to Aito members.
Once ready, members will be able to apply to make Aito their ‘umbrella’ financial protection provider for non-licensable travel. Non-licensable travel includes sales of packages that do not include a flight element.
Christina Brazier, Aito head of industry affairs, said: “We get so many enquiries about whether we provide financial protection, so this is integral to our growth, for new and existing members. It will be a key benefit for members so we will make a song and dance about it.”
Aito has previously stated its intention to grow its tour operator membership from 100 companies currently to 150 by 2030.
Deputy chairman Martin Garland said the association was working hard to make the financial protection service available to members “as soon as possible”, adding: “There are a couple of technicalities to deal with over the next couple of months.”
Previously, Aito offered non-licensable financial protection via an Aito trust but this stopped around 15 years ago due to insufficient resources. It was used by around 50 operators, a third of the total membership at that time.
Garland conceded the service may take time to become established as members weigh the benefits for themselves, and admitted the approval process had taken longer than expected.
However, he insisted: “We are resurrecting something that is important to members,” adding: “We are working with the expectation this will be a slow burner.
“We were always confident if we persevered we would get to this position. Credit to [DBT assistant director for partnerships] Craig Belsham, who saw this would increase choice in the sector for SMEs.”