The rules a new UK travel business has to plan around: ATOL for flight-inclusive packages, insolvency protection under the Package Travel Regulations 2018, voluntary ABTA membership and VAT under the Tour Operators' Margin Scheme.
1. The travel market in the UK
Most new agencies in the UK focus on tailor-made holidays & independent agents. Decide early whether you will sell to travellers in United Kingdom, design trips in United Kingdom for visitors and foreign agents, or both: the answer shapes your licence, suppliers and marketing.
Clients will expect quotations in GBP or their own currency, fast replies, and clear terms before they pay.
2. Licences and registration
There is no general UK licence to be a travel agent, but selling flights is regulated. The Civil Aviation Authority (CAA) says that if you sell flight-inclusive packages or flight-only sales and you are not an airline or acting in an exempt capacity, you need your own ATOL. Exemptions include acting as an agent for an ATOL holder.
The Package Travel and Linked Travel Arrangements Regulations 2018 require organisers of packages to protect customers' money against insolvency. ATOL covers packages that include a flight; packages without a flight need another form of protection, such as a bond, insurance or a trust account.
3. Client money, trust and obligations
ABTA membership is voluntary but widely recognised by UK travellers, and its members follow a code of conduct.
4. Company, tax and banking
Register the company with Companies House and with HMRC. Many tour operators account for VAT under the Tour Operators' Margin Scheme (TOMS); HMRC's guidance explains when it applies.
5. Set up sales and operations
Before the first enquiry arrives, decide how you will capture leads, build quotations, confirm suppliers, invoice and collect payments. For your market, plan these workflows from day one:
6. Launch checklist
Tick these off before you take your first payment in the UK.
Frequently Asked Questions
Do I need an ATOL to start a travel agency in the UK?
Only if you sell flight-inclusive packages or flight-only sales in your own right and no exemption applies. Selling as an agent for an ATOL holder is one of the exemptions. The CAA's guidance explains each case.
Is ABTA membership required?
No. It is voluntary, but many travellers look for it.
Sources
Official pages this guide is based on, checked on 11 October 2026. Rules and fees change: confirm the current requirements with the authority before you apply. This guide is general information, not legal advice.