The ATOL Top 50 revisited - Are the UK's top travel companies moving with the times on sustainability?TerraVerde Sustainability

The ATOL Top 50 revisited – Are the UK’s top travel companies moving with the times on sustainability?

Last year, we assessed the Top 50 ATOL holders against key sustainability markers. Our findings were frankly disappointing; showing that over 40% made no mention of sustainability at all, only 30% having published comprehensive sustainability strategies, and a mere 14% with set science-based targets aligned with the SBTi’s Corporate Net-Zero Standard.

Fast-forward to March 2025, and while progress remains slow, we are nudging in the right direction. While a remarkable 30% still fail to mention sustainability in any capacity, 38% have shared detailed sustainability strategies, and 16% have committed to science-based targets aligned with the SBTi’s Corporate Net-Zero Standard.

Progress among the top 50 appears slow:

The ATOL Top 50 represents the leading UK travel companies – with unparalleled power to influence both suppliers and customers. This group has a unique opportunity to accelerate change and play a pivotal role in ensuring the long-term sustainability of the UK travel industry.

Acknowledging that meaningful change takes time, if the largest companies – those with the most resources and the greatest environmental impact – are not leading the charge, then how can the tourism sector, which is responsible for circa 10% of global GHG emissions, transition to a sustainable future?

It would be easy to end this article here on a resounding note of frustration. However, a closer look at the figures paints a more interesting and optimistic picture.

Firstly, it’s important to note that not all UK travel is ATOL-protected; it’s estimated that around 50% is, including coverage of the UK’s largest travel businesses. As such, evaluating the Top 50 does provide a valuable snapshot of broader industry trends.

Since the pandemic there has been considerable consolidation within the ATOL market. The Top 10 ATOL holding groups now constitute 80% of the total market, compared to 65% in October 2019 (the last renewal before Covid).

Source: https://traveltradeconsultancy.co.uk/news-insights/7-takeaways-from-the-march-2024-atol-authorisation-data/

Taking a closer look at the ATOL top 10

All feature sustainability on their websites, 80% have published comprehensive sustainability strategies and 40% have committed to science-based targets.

It’s clear that the industry giants are leading the way, with 8 out of 10 recognising the importance of a robust environmental strategy.

Large businesses invest heavily in research to predict trends and stay ahead of their competitors, creating opportunities for small to medium-sized travel businesses to follow in their slipstream.

So, what does good look like?

TUI began its sustainability journey back in 1990 when it established its Environmental Management Unit. The company has committed to reducing its emissions by 2030, with aims to cut emissions by 24% for its airline, 46.2% for Group-operated hotels, and 27.5% for cruises, all compared to 2019 levels. Their goals have been validated by The Science Based Targets initiative (SBTi) and they share their progress and approach here.

In 2024, SAGA plc signed the SBTi Commitment Letter, confirming their intention to set science-based emissions reduction targets in line with the Science Based Targets initiative (SBTi) criteria. We look forward to seeing their progress reflected in their next sustainability report.

The Top 50 ATOL list is dynamic, with companies constantly jostling for position. In the past 12 months alone, three new businesses have broken into the rankings. The message to all those in the Top 50 and indeed any UK travel business is clear: if you have yet to define a robust sustainability plan, now is the time. Making a start is easier than you think and aligning with global trends towards sustainability helps your business to remain relevant and keep pace with industry leaders.

Booking.com’s latest Sustainable Travel Report reveals the growing appetite among consumers with 75% of global travellers wanting to travel more sustainably over the next 12 months, and 43% admitting they feel guilty when making less sustainable travel choices.

However, a robust environmental plan is not just about responding to growing customer demand for sustainable options, it’s also a vital tool for managing costs and mitigating risks to your business. In today’s volatile global landscape, travel companies face mounting challenges, from the threat of global trade wars and shifting regulatory environments to the increasing frequency of extreme weather events that can disrupt operations, supply chains, and customer itineraries.

By embedding sustainability into core business strategies, companies can build resilience, reduce exposure to volatile fuel and energy prices, and future-proof their operations.

Forward-thinking travel businesses understand that sustainability is no longer a ‘nice to have’, but a crucial component of long-term risk management and financial stability in an increasingly uncertain world.

At TerraVerde, we are dedicated to helping travel and tourism companies explore opportunities, mitigate risk and develop strategic roadmaps to reduce environmental impact and build resilience.