‘Agents could be breaching PTRs’ Ian Taylor
Abta is concerned agents could be acting in breach of the Package Travel Regulations (PTRs) by mistake or bringing sales within the regulations that don’t need to be. A year on from the introduction
of the PTRs, the association highlighted two changes, including one related to leisure bookings formerly classed as Flight-Plus. Abta head of legal services Simon
Bunce said: “We’ve seen companies that believe the new Linked Travel Arrangements [LTAs] are ‘Flight- Plus’ and that they can carry on as before. Tat is not the case. “[What were] Flight-Plus bookings fall within package protection,
with package-holiday liability.” Under the old regulations, Flight-
Plus Atols permited agents to sell and financially protect flights and accommodation or car hire without atracting package-holiday liabilities. But combining services from two or more suppliers in this way is a package under the 2018 regulations. Bunce said: “We come across
people who don’t know Flight-Plus is now a package.” Agents do remain exempt from
liability for VAT under the Tour Operators’ Margin Scheme (Toms) on this type of booking – as they did with Flight-Plus – so long as they issue a Multi-contract Atol Certificate identifying the suppliers of the separate services.
We come across people who don’t know that what was formerly Flight-Plus is now a package
But Bunce said: “Introduction of
the Multi-contract Atol added a level of complexity. Tere are people who think it’s an LTA, and the CAA does not cover LTAs, and therefore they believe they don’t need an Atol.” He added: “An LTA is different –
don’t get confused.” John de Vial, Abta’s director of
financial protection and financial services, said: “Te CAA was trying
to be helpful [with the Multi-contract Certificate]. Agents were keen on it from the tax point of view. [But] some individuals have not got their heads around the thing.” It was feared the PTRs’
introduction of LTAs would confuse consumers. De Vial told Travel Weekly: “We have members declaring LTA sales and we’re bonding that. But it’s really very small. “Our members have an aggregate
turnover of £39 billion [but LTA sales are] tens of millions.” However, he noted: “Most of
last summer’s bookings would have been sold under the old regime. It will be another year before we really
get a picture.” i Business: back page
Government deal is ‘game changer’ for travel sector
Phil Davies
A new government deal for tourism has been described as a “game changer” for the UK travel industry that will underpin the sector’s success for a generation. Te Tourism Sector Deal, which
is mostly aimed at making the UK a world-class inbound destination, will also create 10,000 apprenticeships each year. Writing exclusively for Travel Weekly, tourism minister Rebecca
4 4 JULY 2019
Pow said the deal recognised the sector as one of the UK’s economic powerhouses, worth £70 billion a year and employing 1.6 million people. She said the 10,000
apprenticeships would provide “crucial training so we can make sure we are providing a world-class, professional service delivered by highly skilled employees”. “I am delighted the government
has the support of industry for this deal. I have no doubt that by working together we can do everything our
deal sets out to achieve,” Pow said. British Tourist Authority
chairman Steve Ridgway said: “Tis sector deal is a game changer for tourism, one of the UK’s most valuable export industries. “It spells a step change in how
we underpin the success of tourism for a generation, moving it to the top table as a leading industry for the government’s future economic planning.” Danny Waine, commercial
sales manager at Hotelplan-owned
Tourism minister Rebecca Pow PICTURE:
Chris McAndrew/ UK Parliament
Interhome and a board member of the Institute of Travel and Tourism, said: “Te deal is a once-in-a-lifetime opportunity for our industry to work together for the greater good, both for our industry and the future of the people working in the industry. ” Developed in partnership with
the BTA and the tourism and hospitality sectors, the deal forms part of the government’s Modern
Industrial Strategy. i Read Rebecca Pow’s comment in full at
bit.ly/tourismsectordeal
travelweekly.co.uk
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