The UK Civil Aviation Authority says 74% of consumers view ATOL protection as more important than ever since the pandemic.
The CAA reminds people to check for financial protection before booking their getaways.
Booking a package holiday that is financially protected by the ATOL scheme is a straightforward way to protect a trip, it says.
ATOL protection enables customers to either get their money back, or, if already overseas, be able to complete the trip at no extra cost, in the event the company ceases trading.
Customers can check if a travel provider is a legitimate ATOL holder on the UK Civil Aviation Authority website.
It advises consumers to check cancellation policies before booking and take out travel insurance as soon as a booking is made.
It also recommends booking via credit card for Section 75 protection under the Consumer Credit Act.
Michael Budge, Head of ATOL at the UK Civil Aviation Authority, said: "With many travellers considering ATOL protection more important since the pandemic, we want to make sure consumers are aware of the financial protection that ATOL provides."
"Whilst travel has not yet normalised, we’re asking holidaymakers to make smart decisions for their well-earned breaks."
