Travel Republic predicted the extension of financial protection to more holiday sales would damage traditional tour operators as it confirmed that it had finally elected to ATOL protect all Flight Plus bookings.
The Civil Aviation Authority confirmed Travel Republic had been granted an ATOL for flight + hotel bookings, even though the company has spent years challenging the requirement for online travel agents selling flights and accommodation separately to be licensed.
Travel Republic chief executive Kane Pirie said: "The extension of ATOL protection in the wider market will only serve to accelerate the decline of the traditional tour operators, who now have nowhere to hide in justifying higher prices."
Travel Republic had previously insisted customers' money was safeguarded under its Total Financial Protection plan, which promised refunds in the event of supplier failure, but since the introduction of the CAA's new Flight Plus legislation it has opted to protect all flight bookings with an ATOL, regardless of flight type. Pirie said this went "far in excess of current UK regulatory requirements".
Tuesday, September 4, 2012