p5 News Nov13 11/11/09 20:14 Page 5
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Todd Carpenter
founding director,
Travel Trust Association
Ruling ‘threatens
“The decision means rafts of
consumers who would have
been legally protected in the
future will now not be afforded that opportunity,
protection basis’
until this situation is rectified. TTA urges the
CAA to address this particular issue as quickly
Lee Hayhurst.
was an unmissable opportunity to clear up the
as possible rather than go through a complete ALTHOUGH this week’s CAA v Travel Republic confusion surrounding consumer protection, a
rewrite of the Atol regulations.” judgment effectively lifts stifling regulatory process that has already started.
restrictions on start-up travel firms, it threatens “Abta initiated discussions with the DfT at the
Alan Bowen the entire basis of consumer protection. beginning of this year with a view to bringing all
legal adviser to the Industry observers said it potentially opened holiday arrangements within a single scheme
Association of Atol Companies the door for operators to unbundle and copy of financial protection, and I am pleased that
“For AAC members this is Travel Republic’s selling model, raising the this idea has been taken up within the DfT’s
a major opportunity to prospect of an end to financial protection for forthcoming consultation,” he said.
emphasise that they always holidaymakers. David Mortimer, chairman of the Association
protect package holiday sales through the Atol The case places greater of Atol Companies, said:
scheme. Bringing clarity to financial protection importance on a planned
“Regrettably, this
“We are dismayed but not
must be a priority for the entire industry. This Department for Transport
decision is likely to encourage more agents to
opens the door to
entirely surprised at the
consultation this autumn on outcome. Regrettably, this
dynamically package without explaining the changes to the UK laws that
more consumers
opens the door to more
consequences to customers.” underpin Atol.
wrongly believing
consumers wrongly believ-
The proposed “flights ing they are protected
Andrew Burnham plus” system would bring
they’re protected”
when they are not.”
principal at accountants online travel agents such White Hart Associates
MacIntyre Hudson as Travel Republic into the
David Mortimer, CAA
senior partner Chris Photi
“There is a danger that this regulatory framework and said: “I do not think this
outcome undermines the finally divorce the need to protect payments judgment is good for the travel industry per se
CAA’s efforts to maintain from the concept of a package. but it’s preferable all round. What the CAA needs
the financial health of both Atol holders and the The definition of what constitutes a package to do is go away and change the law.”
Air Travel Trust Fund. The strong support of the has been at the centre of the debate on financial The CAA said it needed to study the “complex
government and the co-operation of trade bodies protection ever since Abta took the CAA to court decision” fully before deciding whether to appeal
will be necessary to find a universally accepted three years ago and won. and said the prosecution was prompted by
protection mechanism.” Judge Nicholas Evans, in his 22-page judgment independent legal advice.
released on Tuesday at City of Westminster Mag- Youtravel sales and marketing director Paul
Rochelle Turner istrates Court, fundamentally rejected the CAA’s Riches said he understood some operators are
head of research, claim that Travel Republic was selling packages. considering copying Travel Republic’s model and
Which? Holiday Abta chief executive Mark Tanzer said this operating outside of the Atol regime.
“It’s really disappointing
that there is still no clarity
In his words Judge Nicholas Evans
around what a ‘package
holiday’ is, which would make it is easier for “For the purposes of resolving the component separately before moving on to buy
people to know exactly what they are buying. issues in this case I am not placing and pay for another, that would have ensured
Anyone booking a holiday should do so through substantial reliance on what witness [sic] have there was no package.”
an Atol-provided agent, or pay on a credit card so to say after the event. I do not consider the
that they are financially protected.” perception of any particular customer as to “If there were a package, splitting up the
what he thought he was obtaining is helpful.” mechanics of purchase . . . would not have
Bob Atkinson changed the package status. Once a package,
travel expert, “Regulations only encompass packages always a package.”
Travelsupermarket.com ‘narrowly defined’. The consumer may think
“The underlying issue he is protected when he is not . . . the only “It would be demonstrably silly to require the
remains that consumers are way this lacuna in the law can be filled is by customer to make three or more distinct and
still exposed to the risks of legislation.” different payments just to underline and
buying unprotected holidays. We call on the EC to emphasise that separate components have
review the outdated directive on package holidays “There is an acceptance by the prosecution been bought at the same time and to
and government to reform the Atol scheme. They that, had TRL [Travel Republic Ltd] required stop the CAA . . . claiming that what
should ensure that however consumers book their customers to buy and pay for each has been sold was a ‘package’.”
and pay they are adequately protected.”
13.11.2009 05
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