The March ATOL renewal is the smaller of the two annual licence renewal periods, with around 40% of licences renewed during this window. The latest data, published by the Civil Aviation Authority on 2nd April, provides an important barometer of the travel industry’s performance and this year’s figures highlight further signs of a market beginning to level off.
Key ATOL renewal data
According to the CAA’s data, the industry recorded an overall increase of 1.68% in authorised passenger numbers, bringing the total to 35,346,534 passengers*. While this marks modest growth, it also reflects a slowing trend compared with previous years, where renewals typically showed much stronger year-on-year expansion.
Submissions for ATOL passenger numbers are submitted as early as December up until the deadline to end of March. It is probably reasonable to say that most of the numbers do not account for any drop in cancellations from the Middle East conflict.
Performance of the major travel operators
Among the leading ATOL licence holders, there are varied strategies at play:
- There was a rise in capacity from We Love Holidays of 10.2% to 5.5million passengers.
- On the Beach increased their licence size by 7.3%. Remaining in fifth spot.
- Other big increases were from Neilson Active Holidays.
- Large operators such as Jet2 and TUI renew in September.
In total, 1,640 businesses are currently licensed under the ATOL scheme. However, 26 companies listed on List 1 are yet to renew, either due to outstanding conditions or applications still in progress.
There were 41 Companies who chose not to renew.
What we can infer from the data is it showcases the importance of having the ATOL logo for consumer protection. There is still continued demand for ATOL protected holidays and packages.
It does, also point out that over 50% of the UK’s population is ‘expected’ to go on an ATOL protected holiday. Is there this much capacity in the market?
For travel businesses, the challenge ahead lies in adapting to a more competitive, value-focused market while maintaining the trust and protection that consumers continue to prioritise. As well as reacting to consumer change in destinations, to re-book those holidays to destinations they feel safer in.
