GUIDANCE ON THE APPLICATION OF THE CODE OF CONDUCT
12 August 2015
If a client books a package holiday that includes a flight, then their money must be protected under the ATOL scheme. This is operated by the Civil Aviation Authority (CAA)
www.caa.co.uk. If they book a package holiday that doesn't include a flight, then their money will be protected either by way of a bond held by a trade association, e.g. ABTA, or by way of an insurance policy, or by placing their money into a trust account.
Flight-Plus Holidays and Flight-Only Arrangements
The Civil Aviation (Air Travel Organisers' Licensing) Regulations 2012 are overseen by the Civil Aviation Authority (CAA). They require tour operators and travel agents who sell Flight-Plus holidays, and tour operators who sell flight-only arrangements to hold ATOL licences and to provide protection for clients' money and to bring them home if necessary.
Flight-Plus holidays are holidays that are not package holidays, that consist of a flight out of the UK along with accommodation and/or car hire outside the UK to be used with the flight. The sale of a flight-based package holiday along with a separate accommodation or car hire is also a Flight-Plus. The accommodation or car hire must have been requested by the consumer on the same day as the flight, or the day before, or the day after.
This protection doesn't apply to flights or Flight-Plus holidays that are bought directly from an airline. It also doesn't apply where a flight is bought from a travel agent and the agent issues a ticket immediately as agent for the airline.
Voluntary Schemes
Some travel companies offer protection for clients' money voluntarily. For example, accommodation-only providers may offer protection although there's no legal requirement for them to do so.
This protection may be provided by way of a bond held by a trade association, e.g. ABTA, or by way of an insurance policy or by placing the money into a trust account. 2.
Booking Conditions
Clients must be made aware of the booking conditions and terms of business that apply to their travel arrangements. If they aren't, you or the principal may not be able to rely on those conditions in the event of problems later on. This may result in relatively minor matters, such as being unable to impose cancellation and amendment charges, to more serious matters such as being unable to rely on exclusion or limitation clauses when dealing with personal injury claims.
For further information about what must be included in your booking conditions please see Appendix 1: Standards on Brochures & Booking Conditions.
If you're an agent and you have your own terms of business covering matters such as service fees and administration charges if a client cancels, these must also be provided to clients before a booking's made. They need to state clearly the amount of, or the basis for calculating, any amendment or cancellation fees that a client might incur. A failure to bring your own conditions to the attention of your clients could be considered under clause 2E of the Code. Model Agency Terms of Business for Members are on our website.
3. Information Specific to the Travel Arrangements
The following details should be given to the client before a contract's made if relevant to the particular travel arrangements:
©ABTA Ltd ©ABTA Ltd
184 ABTA CountryByCountry Guide 2016
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