ttglive.com
self-packaging knowledge
HOW MUCH DOES AN ATOL COST? Most agents moving seriously into self-packaging start with the small business Atol (“mini Atol”), limited to 500 passengers per year. Application fee is £965 and you must provide a £40,000 bond. The standard Atol has an application fee of £1,790 plus 11.85p per passenger for expected number to be licensed, and minimum £40,000 bond. You must also meet the CAA’s “financial and fitness requirements”. Find out more at
http://tinyurl.com/TTG-Atol
other nasties such as the Tour Operators’ Margin Scheme rearing their ugly heads. Atol-holders are legally liable for the airlines they sell, which is causing alarm, but they can insure against the risks. The key to creating a package now, but not when Flight Plus comes in, is getting separate invoices for each holiday element and passing them on to customers, but this could mean revealing your mark-up. What you must avoid is making your own package and putting it in your window or on your website at an inclusive price.
Having your own Atol why it is worth doing
Daniele Broccoli Director, Britaly Travel, Peterborough Britaly started self-packaging when the no-frills airline boom began, and soon acquired a “mini Atol”. It gained a full Atol after launching its own tour oper- ation, Typically Italian – an example of how an agent with specialist knowledge can make the big leap. “We would put everything on separate invoices and tell people it wasn’t a package, but like many agents I didn’t fully understand my responsibilities until things went wrong. “Now I only use bed banks that act as prin- cipals and take full responsibility, because if
Paul Stowe Owner, Stowaway Travel, Cheshunt A long-established independent with particular expertise in Andalucia and Australia, Stowaway holds its own Atol.
“The key is to be careful what you package, and I only use four-star hotels and above, or accommodation I know.
“Agents worry too much about self-packag- ing, but you can also look at TripAdvisor to get feedback.
“In the low season it may be easier to sell tour operator packages, but in high season they can be greedy.
you tell clients they’re on their own, you’ll scare them. You may have to reveal your margin, but clients don’t mind if you give them an invoice showing a fee. They mind if you say upfront the holiday costs £350 and my fee is £35. Getting an Atol wasn’t a problem. Get one if you self-package a lot. “Flight Plus may cost more, but people will pay for better protection.”
Daniele says he can beat tour operators by £100 per head on a week in Majorca, at 10% commission.
Abta’s head of legal and member services, Simon Bunce, says: “When Flight Plus comes in it isn’t clear if agents will need another type of Atol. It also isn’t clear whether some companies will avoid it by claiming to be the agent of the customer. It will certainly increase costs as it creates more protection. “My advice to agents is not to worry for now, as consultation is underway and they’ll hear more about it in the autumn. But make sure the holidays you sell have the correct documentation passed on to customers. Learn from the Goldtrail collapse.”
“As we are competitive we figured ‘if you can’t beat them, join them’ – this is the only way to survive.
“The Atol was easy to get and tour operator insurance covers us for negligence. “But Flight Plus could be a threat, and I object strongly to not having a level playing field with airlines.”
Stowaway Travel says it saved £210 per head for a couple flying to New York for four nights in a four-star hotel, compared with a tour operator’s price, which started at nearly £700.
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