Trade ‘crying out for clarity’ on Atol and package travel reform. Ian Taylor reports from Costa Navarino
Proposed changes to PTRs ‘should benefit operators’
Abta urged the Department for Business and Trade (DBT) not to stall on reform of the Package Travel Regulations (PTRs), with director of legal affairs Simon Bunce declaring “the PTRs are a different kettle of fish from Atol reform”. Bunce said: “There has
been a real shift in the balance of risk between operators and customers, with more and more piled on organisers, which wasn’t what was intended when the PTRs were drafted. “With every issue that came
up during Covid, the European Commission has been looking to place responsibility on operators.” Bunce suggested “the UK has a chance to change that”
Simon Bunce
BUSINESS NEWS
Industry ‘must be a good citizen and take ESG issues seriously’
Environmental, social and governance (ESG) issues must “be taken seriously” by the industry, regardless of the challenges. Abta director of legal affairs
with the review of the PTRs. He insisted: “Consumers are well protected under the PTRs. [But] it has become more expensive and complicated to be a package holiday organiser. “We were making good
progress on the PTRs review. We have a great opportunity to bring some reality back to the tour operator-customer relationship.” He said: “I understand the DBT
is conducting consumer research [on the regulations]. We should embrace reform and get change that benefits the industry.”
Simon Bunce told a breakout session on travel law: “Companies of a certain size have a legal obligation to report on ESG, and the industry as a whole has an obligation to do these things.” He noted most companies “are
not talking about” what they do on ESG “because you have to be careful. You have to be specific and not just say ‘We sell sustainable holidays’.” Chris Roche, chief executive
of tour operator The Adventure People, suggested: “ESG has become the Wild West.” But he said: “We have a
Atol reform ‘needs an end date’
Travel businesses “are crying out for clarity” on the CAA’s Atol reform, according to Abta director of legal affairs Simon Bunce. Speaking at a travel law
breakout session at Abta’s Travel Convention in Greece last week, Bunce suggested: “The CAA got bulldozed into changing Atol because of the trouble [over refunds] during Covid. But the CAA already has flexibility to ensure Atol holders have the level of security it requires.” He argued: “People are crying out
for clarity on what is going to happen.” The CAA launched a consultation
on Atol Reform in April 2021 and planned to have the initial phase of a revised Atol regime in place by now. It published a ‘Request for Further Information’ on the
travelweekly.co.uk
proposed reforms in January 2023. Together, these two documents drew close to 600 responses. A joint CAA and Department
for Transport (DfT) statement confirmed a delay to the reform in January this year, but asserted there “remains a strong case” for reform, and the then aviation minister promised an update later this year. However, Bunce said: “I don’t
think we’ll see anything [on Atol reform] next year. We need clarity on what is happening.” Rich Simpson, travel governance
and compliance manager at The Midcounties Co-operative, agreed saying: “We absolutely need certainty because it’s difficult to plan. Our business model and those of others would potentially have to change.
Atol reform has gone on so long now, it really does need to take place.” Abta chief executive Mark Tanzer
noted there are two strands to the proposed reforms – segregation of customer money and a switch to a variable rate of Atol Protection Contribution – when he addressed the convention on the opening day. He said: “We need to know
if there is going to be change.” But Tanzer argued: “The
underlying problem is we never understood what Atol reform is trying to solve. That is why it has run into the sand.” Speaking at a Travel Weekly
Business Breakfast at the convention, Abta chair and Blue Bay Travel chief executive Alistair Rowland said: “It’s difficult to plan without knowing
Alistair Rowland
what is happening on Atol reform and bonding. It needs sorting out. “There has to be an end
date. They [the CAA and DfT] can’t say there will be a statement and then there is no statement. Let’s have clarity.”
17 OCTOBER 2024 55
responsibility to ensure we’re good citizens. It’s just essential.” Bunce agreed: “It is the Wild West
– you see some terrible things out there – but as an industry we need to be doing it. We have to take carbon use and overtourism seriously. “To attract the brightest young
people, you have to be able to tell them what you’re doing about this.”
Chris Roche
PICTURES: AG Studios
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