BUSINESS NEWS Aito Autumn General Meeting: Association debates liability and protection. Ian Taylor reports


Operators urged to check insurance after Kuoni case


A senior industry lawyer has warned “adequate liability insurance is essential” following the Supreme Court ruling in the case of X v Kuoni. Claire Ingleby, director at MB


Law, said: “Kuoni was found liable for a scenario that it had no control over, it could not have foreseen and could not have prevented.” Addressing the autumn general


meeting of Aito, the Specialist Travel Association, Ingleby noted: “There was no criticism of Kuoni throughout [the lengthy legal case] and no evidence of negligence on its part, so how should organisers deal with that?” The Supreme Court ruled in


August that Kuoni was liable for damages to Mrs X both for breach of contract and under the Package Travel Regulations (PTRs). Mrs X was raped by an electrician


at the four-star Club Bentota hotel in Sri Lanka in 2010 after being lured into a room under the pretext of being shown a shortcut to reception. The claim hung on whether a tour operator is liable for the conduct of hotel staff.


Aito buoyed by all bar one operator member renewing


Aito reported only one operator member failed to renew their membership during the association’s renewal process. Association executive director


travelweekly.co.uk


Martyn Summers told members: “We knew this would be a tough renewal period.” But he said


The High Court had dismissed


Mrs X’s claim and the Court of Appeal dismissed her appeal. Ingleby noted both “found the services provided by Kuoni did not extend to maintenance staff and the event could not have been foreseen”. But when Mrs X appealed to the


Supreme Court, it sought guidance from the European Court of Justice which found “employees fall within the sphere of control of the organiser or supplier of services” and “the events could not be said to be outside the control of the organiser or supplier”. The Supreme Court noted Kuoni had a defence under the PTRs if it


could not “foresee or forestall” what happened, but the CJEU ruled that defence did not apply and its ruling remained binding on UK courts. MB Law represented Kuoni and


its insurers in the case. Ingleby said: “It was an insured


case and the insurer picked up the bill. Adequate public liability and tour operator insurance is essential.” She advised Aito members:


“Revisit your supplier instructions and indemnities. Ensure you have a good risk management system, and ensure the sensitive handling of any allegations of assault, harassment or inappropriate behaviour.”


the renewals “exceeded our expectations” as “only one tour operator was unable to renew due to financial considerations”. Summers noted Aito had


reduced its membership fees during the pandemic, insisting: “Reducing our tour operator and travel agent fees by up to 33% and keeping the direct debt system for payments was the right thing to do.” He added: “All Aito specialist


Aito’s Bharat Gadhoke moderates a session


Purser: Atol reform based on a one-off event


A leading consultant to the sector and former CAA Atol manager described the regulator’s Atol reform proposals as “extraordinary”. Travel Trade Consultancy


director Matt Purser said: “They’re talking about changing the whole regulations.” Purser noted the latest Air


Travel Trust accounts reveal the failure of Thomas Cook cost £444 million and said: “The next-biggest Atol failure cost £3.6 million. The Atol consultation is about ripping up how the CAA licenses companies off the back of a one-off event. I find that extraordinary.” The CAA consultation,


which ended in August, proposes segregating customer money through Atol holders’ use of ‘escrow’ or trust accounts. Purser said the CAA used


the latest Atol renewal to “try to push more of the industry down the escrow route”. He argued: “There was some pushback and they stepped back. I’ve never known a renewal like it.”


travel agents have indicated they’re going to renew, which is fantastic.” Treasurer Stephen Brook told


the Aito autumn general meeting: “Our aim is to balance the budget and end the year with some reserves. “We had a large surplus from


last year which we used to cover a deficit this year and we believe we’ll carry over a surplus to next year. It’s steady as she goes.”


14 OCTOBER 2021 47


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