Atol expiry rate doubled in March Ian Taylor
Double the number of Atol-holders failed to renew licences at the end of March compared with a year ago, but senior industry sources describe the numbers as not unusual – especially in the circumstances. The number of Atols which
expired on March 31 almost doubled to 99, up from 55 in March 2020, while the number failing to renew on time and awaiting confirmation rose from 46 to 89. The CAA confirmed 554 of 742
licence applications were renewed, with 13% of the total not applying to renew compared with 7% 12 months ago. The regulator noted 23
of the non-renewed licences were Atol-to-Atol. The proportion awaiting renewal
(12%) was also double the 6% rate of March 2020. However, the CAA said half of these licence holders (44) had submitted applications within the last 10 business days of March. A senior industry source told
Travel Weekly: “There are more [non-renewals and late renewals] than normal, but not hugely more. “There is a lot of consolidation
and retirements [and] a huge number of people found it impossible to make projections and were worried about putting in the application. “Most on the [late renewals] list
will renew. The CAA is trying to keep as many people as possible on track.”
Agents ‘shocked’ by ‘incredibly unfair’ grants
Juliet Dennis
Agents say the government’s Restart Grants disproportionately favour other high street businesses such as hairdressers. Non-essential high street retailers
such as travel agents can apply for grants of up to £6,000, but leisure and hospitality businesses can apply for up to £18,000. Applications for the one-off
grants opened this week ahead of the easing of restrictions on Monday (April 12). Agents were shocked to discover
6 8 APRIL 2021
‘Strand One’ aid for non-essential retailers is just £2,667 for shops with a rateable value of up to £15,000; £4,000 for rateable values up to £50,999; and £6,000 for those above. In comparison, leisure, personal
care, accommodation and hospitality businesses in ‘Strand Two’, such as hair salons and gyms, will receive £8,000, £12,000 or £18,000, depending on the three tiers. Spear Travels chairman Peter
Cookson said the difference was “incredibly unfair”. His miniple will receive £34,670 for its 12 branches, with most in the
However, the source warned:
“Some people are running out of steam. If we lose the summer, we’ll have a long list of late renewals in September.” Alan Bowen, legal advisor to the
Association of Atol Companies, agreed: “There are more this year than last. [But] a lot of those which haven’t renewed were doing dynamic
packaging using Ryanair, got burned and have gone back to being agents.” He added: “A lot of companies
don’t need trade Atols anymore to save VAT.” Head of Atol licensing Michael
Budge said the CAA had focused on “ensuring the appropriate protection of advance customer monies and requiring Atol-holders to maintain adequate liquidity”. Budge did not give details but the CAA has toughened financial requirements in light of the lockdown and volume of refund credit notes issued. The CAA advised businesses
due to renew Atols in September “to apply in good time”. The renewals left
the total number of Atols at 1,662. i Get Social, page 25
Travel agents are categorised in the less-generous ‘Strand One’ for Restart Grants
lower category – but would have been entitled to £104,000 in the ‘leisure’ category. He said: “The question is why is
a restart grant for a hairdresser, who receives instant cash income from day one of restart and is booked up for months, worth three times that of a travel agent, whose income is likely to be delayed for months?” Henbury Travel owner Richard
Slater agreed: “I’m shocked. The most deserving are getting the least. Hairdressers will have a queue a mile long when they reopen.” He has applied for a Strand Two grant,
insisting he is a leisure business. Greenstar Travel owner Martyn
Fisher said repeated government advice not to book holidays made the differential even more of a “kick in the teeth”. He said: “It’s like saying the salons will be open but you shouldn’t get a haircut.” Arron Mitchell, director of
Platinum World Travel, called for agents to be moved into Strand Two. The criticism follows lobbying by
Abta. Director of public affairs Luke Petherbridge said funnelling cash towards businesses likely to be busy from the get-go “seems illogical”.
travelweekly.co.uk
Strand One Grant
PICTURE: Shutterstock
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