NEWS SPECIAL REPORT
Get your voice heard on the proposed changes to Atol
The travel industry has until March 23 to give its feedback on proposed changes to the Atol consumer protection scheme. Lee Hayhurst outlines what you need to know
Q. Why is the industry being asked for its views on new Atol regulations? A. Two consultations have been issued, one by the Department for Transport (DfT) and one by the Civil Aviation Authority (CAA), which runs the Atol protection scheme for package holidays. The DfT’s ‘Updating consumer
protection in the package travel sector’ consultation seeks views on Atol changes as the UK implements the new EU Package Travel Directive (PTD) into law. This must be enacted by July 1
after the new Package Travel Regulations 2018, drafted by the Department for Business, Energy and Industrial Strategy, have been laid before Parliament. The CAA must update the Atol
scheme to reflect changes in the legal framework that underpins it. Its ‘Modernising Atol’ consultation sets out the ‘standard terms’ by which Atol-holders, including accredited bodies’ members, must operate. It also outlines updates not required under the new PTD, like enforcement and a new CAA system to produce Atol Certificates.
Q. Why are the regulations being updated? A. New EU rules were agreed to reflect the changing travel sector to ensure consumers are offered
financial and other protections, like repatriation in the event of company failure. The CAA consultation states: “The UK has a dynamic travel industry that is expanding as greater numbers of people seek to travel. It is important to review regulation and ensure that it is comprehensible for travel businesses, and that it delivers the clear and robust protection holidaymakers expect.”
Q. How do the new rules change the definition of a package? A. Flight-Plus packages will cease to exist as the definition of a package is broadened. The UK brought in the Flight-Plus Atol to capture so-called dynamic packages. The new PTD expands packages to cover arrangements “sold on the basis of multiple contracts”. Flight-Plus Atol Certificates will be relabelled ‘Package sale – multiple contract’. This may affect firms’
licensable businesses, but under transitional arrangements only those that see an increase must update their Atol. Others will not be required to make a change before their next Atol renewal. A contentious aspect of the new PTD is new Linked Travel Arrangements (LTAs), which are proposed to not come under Atol.
Q. What are Linked Travel Arrangements? A. LTAs are a ‘looser’ combination of products. Intended to capture click-through online sales, they provide financial protection only in the event of insolvency. Described by independent Atol experts as a “poisoned chalice” and the “unloved child” of the new PTD, it is proposed LTAs will be regulated by Trading Standards. In stark contrast to the UK’s
legal interpretation, in Germany LTAs are seen as offering agents the ability to sell split-contract packages and avoid full tour
operator liabilities. However, UK regulators consider LTAs “confusing” and “complicated”. LTAs will be reviewed by the EC after two to three years.
Q. What are other proposed key changes? A. A loophole to avoid Atol regulation by acting as ‘agent for the consumer’ will be closed. Atol will be extended to firms
that facilitate offering flight packages to consumers. This could catch new online businesses that receive payment from the supplier. The CAA wants to create an
online system for issuing Atol Certificates. Agents would no longer issue documentation but systems would have to be updated to pass on data. The CAA said this would improve enforcement and clarity to consumers and assist repatriation and refund management. No date has been set for delivering this. The CAA will get new powers to
fine firms that contravene Atol rules. Currently it can only revoke licences. Corporate travel will be exempt from Atol and there will be broader exemption for flight-only sales.
Q. How do I respond? A. Visit the websites below by
March 23 to have your say.
tinyurl.com/caaconsultation tinyurl.com/dftconsultation
12
travelweekly.co.uk 1 March 2018
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88
