news conference report The Travel Convention 18-20 October ■ Hilton Malta Conference Centre ■ St Julians
Impending Atol reform and falling consumer confidence were the main issues at this year’s conference. ByTTG news team in Malta
Atol’s morality quizzed
Chris Gray. TRAVEL REPUBLIC boss Kane Pirie has questioned the morality of plans for Atol reform after the CAA admitted one of the key reasons for the changes was to “pay off the ovedraft” of the Air Travel Trust Fund used for repatriation and refunds after an operator fails. Pirie, managing director of the online agent, was speaking after CAA director of consumer protection Richard Jackson said the need to clear the ATTF’s debts was driving the current reforms. Jackson added that a rethink would be needed so that a “rational, affordable” scheme could be created in five years. “If part of the motivation for Flight Plus is to clear the debt of the ATTF, is that morally right? And why should agents be taxed to clear the debt caused by failed tour operators?” asked Pirie. Jackson replied that Flight Plus, requiring an
Atol for all sales of a flight and another holiday component, was now in the “political DNA” as an interim solution because the government’s priority was to “pay off the overdraft” on the ATTF. He later pointed out that some of the money paid out from the ATTF had been used to pay Travel Republic’s customers. Andy Cooper, head of public affairs for Thomas
Cook, asked why Cook, which had been financially sound for more than 100 years,
ABTA VIEW. Consumer confidence ‘has gone backwards’
PROGRESS IN creating consumer confidence in the travel industry “has gone backwards” over the past year, Abta bosses believe. Abta chief executive Mark Tanzer said the
events of the past 12 months had reversed progress in creating “confident consumers”. “Since we raised this last year, things have gone backwards in terms of consumer confidence with the ash cloud, company failures and strikes. Confidence has gone backwards,” Tanzer said.
10 22.10.2010
Luke Pollard, the association’s head of public affairs, said the slide in confidence – combined with new legislation and government decisions on tax and infrastructure develop- ments – made the coming months a critical time for the industry. He added that plans for Atol reform would be announced shortly and the European Union’s overhaul of the package travel directive
Pirie: question way CAA will use Flight Plus to pay off debt
should pay into a scheme that had gone into debt partly because of failures of “cowboys” over the past few years. Pirie also raised concerns that the Atol
reforms would push more people to go out of the system of protection completely. He said Flight Plus would lead to more con- sumers booking flights and hotels independently without any form of protection. “If agents have to pay a contribution but airlines don’t, the effect will be that more people want to go outside the regime,” said Pirie. “They will buy a flight from Cook and a hotel from Hilton.”
ATOL DOCUMENT.
CAA downsizes... to a sheet of paper
THE CAA may introduce a new Atol certificate which would be given to every customer who books an Atol-protected holiday. The scheme intends to ensure customers are
looked after by the CAA if a tour operator ceases trading when they are abroad, or would be refunded by Atol if they had not yet travelled. The certificate would be a simple document issued in a standard format across the Atol- licensed industry, and would replace the complex paperwork which holidaymakers are currently given when they book. The CAA began talks with Atol holders and consumer representatives about the certificate, at the convention this week. It hopes to set up a working group to get industry and consumer expertise before consulting on the proposal. David Moesli, deputy director of the consumer
protection group at the CAA, said: “The holiday failures this summer showed that a lot of con- sumers are left confused and frustrated when tour operators cease trading, thanks in no small part to the poor standard of documentation in the travel industry, particularly among agents. “Introducing the Atol certificate would mean that the second someone books a holiday they receive a single document that sets out what is protected by Atol and guarantees they can finish their holiday or get their money back if their operator fails.”
was also expected within six months –meaning the legal frame- work for the industry would change. He added that Abta had more work to do in getting politicians to support the industry against an anti- aviation mood among law-makers. “Every MP is in favour of holidays.
Tanzer: progress has been reversed
We need to make them passionate about the issues, whether they are airport quality or consumer protec-
tion, and that means making people understand better what we do,” Pollard added.
ttglive.com
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