Running a travel agency or tour operator business means complying with ATOL licensing if you sell flight-inclusive packages or flight-only arrangements, meeting your duties under the Package Travel and Linked Travel Arrangements Regulations 2018 if you organise or retail packages, and following consumer protection rules that prevent misleading claims about holidays, prices and insolvency cover. On top of that, every business that employs people must meet workplace health and safety, fire safety, employers' liability insurance, equality and data protection obligations.

ATOL is regulated by the Civil Aviation Authority (CAA) UK-wide. The Package Travel Regulations are enforced by Trading Standards and the Competition and Markets Authority (CMA). Workplace health and safety is enforced by HSE in Great Britain and HSENI in Northern Ireland.

Health and Safety at Work etc. Act 1974 (HASAWA)

The Health and Safety at Work etc. Act 1974 - primary UK workplace health and safety legislation establishing employer and employee duties. Pure data reference.

The Health and Safety at Work etc. Act 1974 (HASAWA 1974) is the primary legislation governing workplace health and safety in the United Kingdom. It establishes the legal framework for protecting the health, safety and welfare of people at work and those affected by work activities.

Legal status: Primary legislation - principal UK health and safety statute
Royal Assent: 31 July 1974
Came into force: 1 April 1975 (in stages)
Geographic scope: Great Britain (separate legislation applies in Northern Ireland)
Applies to: All employers, employees, self-employed persons, and those who control work premises
Primary duty (Section 2): Employers must ensure, so far as is reasonably practicable, the health, safety and welfare at work of all employees
Duty to non-employees (Section 3): Employers must protect persons not in their employment (contractors, visitors, public) who may be affected by work activities
Employee duties (Sections 7-8): Employees must take reasonable care for their own health and safety and that of others, cooperate with employers, and not misuse safety equipment
Enforcement authority: Health and Safety Executive (HSE) and local authorities
Maximum penalties (post-2008 amendments): Unlimited fines in Crown Court; imprisonment up to 2 years for individuals; up to 12 months and/or an unlimited fine in Magistrates' Court in England and Wales (12-month custody powers from 18 November 2024; fines unlimited since March 2015 under LASPO 2012, s.85)
Referenced by regulators: Cited in 31 regulatory documents in the ORDS (Office for Regulatory Delivery and Simplification) dataset
Secondary regulations: Enables creation of health and safety regulations (e.g. Management of Health and Safety at Work Regulations 1999, COSHH, Manual Handling)

Reasonably practicable: The Act uses the term "so far as is reasonably practicable" throughout. This means employers must balance the level of risk against the time, trouble and cost of controlling it. However, the law is weighted in favour of health and safety - employers must demonstrate that control measures would be grossly disproportionate to the risk before they can be considered not reasonably practicable.

Self-employed persons: The Act also places duties on self-employed persons to protect their own health and safety and that of others who may be affected by their work activities.

Health and Safety at Work etc. Act 1974 (legislation.gov.uk)

HSE - Health and Safety at Work etc. Act 1974 guidance

What you need to do

Identify the description that best fits your business, then follow the guides in order.

1

Every travel agency and tour operator

Start with the universal workplace duties. Follow "Set up and run a safe travel or tour operator business" for your health and safety, fire safety, employers' liability insurance, equality and data protection obligations.
2

You sell flight-inclusive packages, flight-only arrangements, organise or retail packages, or need to meet consumer protection duties

You must hold an ATOL if you sell flights as principal or agent for an undisclosed principal, comply with the Package Travel Regulations if you organise or retail packages, and follow consumer protection rules on pricing and claims. Follow "Meet your travel and tour operator regulatory duties".
3

Confirm you have covered everything

Work through the travel and tour operator compliance checklist to confirm your obligations are met.

Official sources

Authoritative starting points for travel and tour operator businesses.

CAA: ATOL licensing overview (opens in a new tab) CAA
Package Travel Regulations 2018 guidance (opens in a new tab) GOV.UK
Civil Aviation Act 1982 (opens in a new tab) legislation.gov.uk

Which travel agency and tour operator regulations apply to your business

Meet your travel and tour operator regulatory duties

Travel and tour operator compliance checklist

Fire safety duties for Northern Ireland businesses

Fire safety duties for Scottish businesses

Set up a limited company

What you need to do

Every travel agency and tour operator

You sell flight-inclusive packages, flight-only arrangements, organise or retail packages, or need to meet consumer protection duties

Confirm you have covered everything

Official sources

Related guides in Compliance & Legal

What you need to do

Every travel agency and tour operator

You sell flight-inclusive packages, flight-only arrangements, organise or retail packages, or need to meet consumer protection duties

Confirm you have covered everything

Official sources