BUSINESS NEWS experts discuss Atol reform, economic outlook and more. Ian Taylor reports from London


CAA reports ‘renewed energy’ for Atol reform


There is “renewed momentum” to Atol reform and the CAA remains committed to addressing how “some businesses fund their operations”, although the upcoming general election “may affect when this happens”. CAA head of Atol Michael Budge


emphasised the Department for Transport’s (DfT) commitment to reform when he spoke at the Abta Travel Finance Conference in London last week, saying: “We’re working hard with DfT colleagues. There is renewed energy at the DfT, renewed momentum. They want to get this done.” He acknowledged “any change has


to be approved by the secretary of state” and noted: “There could be a change in the government and in the secretary of state. But it doesn’t mean a new government will come in and put this in a black box. The department officials are highly engaged. “A general election may affect


when this happens, but it won’t mean a change of direction.” Budge explained the delay


in announcing detailed reforms,


when we’ll issue something, but we’re committed to doing something. We understand the need for clarity for businesses.” He told Travel Weekly: “We’ve seen


a reduction in the use of customer money over the last couple of years. But we see enough businesses still doing this [using customer money] – enough that it remains a reason for us to do something.” Budge noted the strong recovery


Michael Budge


with proposals first published in April 2021, saying: “It’s important we get this right. Our role is to ensure the scheme protects people and enables business.” He added: “We’re not looking


to change what the consumer gets. This is about ensuring sustainability for the industry and consumer. We’ve seen the way some businesses fund their operations.” Budge told the conference: “I’m not going to be drawn on


of the sector last year but added: “It doesn’t mean all businesses are increasing their financial sustainability. We see companies using consumer money to fund growth, to invest in marketing and to invest in people. It’s right to invest, but funding has to come before you take bookings.” Abta director of legal affairs


Simon Bunce told the conference: “We’re not going to see anything [on Atol reform] any time soon, but it’s significant the CAA and DfT are still concerned about advance customer payments being used for operational expenditure. That is still going to be the battleground.”


Card acquirers ‘should be more transparent’


A lack of transparency among card acquirers, which process card payments, is hindering efforts to simplify financial services for the sector. That is according to Abta


director of membership and financial protection Rachel Jordan who said: “If everyone was as transparent about card protection as Abta, it would help. I’m talking about the card acquirers.” Addressing the impact of


regulatory reform on financial protection, Jordan argued: “We want people to come together to find a pragmatic, cost-effective solution. I don’t think any individual association has a solution.” Jordan said Abta had


to change its bonding requirements during the pandemic but revisions since had “been really well received”. Post-pandemic, she said:


“We changed the financial criteria, overhauled the bond scheme and introduced Bond+ where we look at the risk of a member and present two to five options on how to cover this.”


Abta director says UK ‘fortunate’ not to be subject to EC directive reform plans


The UK trade is “fortunate” not to be subject to EC proposals for package travel reform, according to Abta director of legal affairs Simon Bunce. He told the conference: “The


EC is looking at limiting upfront prepayments so a [package] organiser can’t ask for more than 25% [of the price of a holiday] and can’t seek the balance more than 28 days before departure.”


travelweekly.co.uk He suggested: “There is lots of


pushback on that.” However, he noted the organiser “can ask for more” from a consumer if they have to pay suppliers more. Bunce noted the EC is also


looking at an increased right to refunds for consumers due to extraordinary circumstances, not just at a destination but at the consumer’s place of residence.


Simon Bunce


a tour operator? It seems to put liability for every problem on to tour operators.” The EC also proposes to extend


the impact of travel warnings on consumers’ refund rights. Bunce insisted: “We’re fortunate


He argued: “This came out of


Covid when people were unable to travel. But what has that to do with


we’re not caught up in the discussions in Europe. The discussions here [on reform of the Package Travel Regulations] are of much more use.”


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PICTURE: Tim Anderson


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