Continued from page 72
clear the ability to use an Atol to protect turnover overseas ceases, so having contingencies in place is important. People need to stay focused on Brexit.” Abta is also seeing members
sell the new category of Linked Travel Arrangements (LTAs), which sit outside the Atol scheme – although it believes some smaller members may be doing so by mistake. De Vial and Bunce believe
there is also confusion about business travel sales. Bunce said: “Te way the
2018 regulations define a package means a lot more business travel falls within the definition than under the old regulations. “A travel management
company will be a [package] organiser unless it takes steps to exempt business travel through a ‘general agreement’ [with a corporate client]. “We’re surprised we’ve not
seen more people asking how to do that. Neither we nor the CAA have seen as much activity to take business travel out of the regulations as we expected.” De Vial said: “[Travel
management] agreements are oſten three-yearly and there is a natural reluctance to change the cycle. [But] a significant number of smaller members don’t have general agreements in place [and] have insurance to protect their turnover. “Tat is OK so long as they are
aware where they stand.” Abta had hoped the CAA
would issue guidance on the wording of business travel ‘general agreements’, but none is in prospect. De Vial said: “Our understanding is the CAA has no immediate intention to release any wording.”
‘PTRs hav Lawyer Rhys Griffiths assesses the impact of the 2018 Package Travel Regula
Te Package Travel and Linked Travel Arrangements Regulations (PTRs) which came into force on July 1 last year were expected to have a significant impact, levelling the playing field between tour operators and online travel agents. Tey were forecast to liberalise
the insolvency protection regime – or decimate it, in the view of some – and to confuse travel companies and customers by introducing a new type of regulated holiday called a Linked Travel Arrangement (LTA). OTAs would become liable for
the proper performance of a package holiday in the same way as tour operators – opening OTAs up to customer complaints, health and safety responsibilities, and package holiday claims. Te reality is most OTAs have
managed the transition without much fuss. Many already looked aſter customers who encountered problems with their holidays because it was good business. Some of the obligations imposed by the PTRs go beyond what the OTAs already did for customers, but to some extent it has been business as usual. What was new and unwelcome to
the OTAs was liability for customer claims. Tis has required they implement systems to deal with claims as well as arrange broader insurance coverage. However, it is not wholly
unfamiliar territory for OTAs. Tey were accustomed to receiving legal leters and personal injury claims as well as having to arrange insurance cover before the new regulations. One practical effect of the PTRs has been that more successful claims
70 4 JULY 2019
Rhys Griffiths
What was new for
OTAs was liability for customer claims, though this was not wholly unfamiliar territory
have been made against them, but the arrangement of claims-handling systems and enhanced (more expensive) insurance has been relatively straightforward.
Many OTAs had already started to
develop their own health and safety systems before the new PTRs. While OTAs would roll out an ‘agency defence leter’ in response to customer claims, the reality is no director wanted to have to explain to a judge or coroner that their company did nothing in terms of health and safety. Given the new regulations only
apply to bookings from July 1, 2018, it may be we see a spike in claims against OTAs from this summer, but so far the transition has been smooth.
travelweekly.co.uk
PICTURE: Alexander Caminada
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