Advisory body critical of ATOL reform
An advisory body to the government has criticised some aspects of its proposed ATOL reforms, which it says should not be rushed through by January 1.
The Air Travel Insolvency Protection Advisory Committee (ATIPAC) said it supports primary legislation to bring all airlines into the ATOL scheme, but it said that until all scheduled flight sales are included, charter flights should also be excluded. "The Committee's view is that flight-only sales should either be completely included or entirely excluded to give real clarity to consumers," it said.
ATIPAC is concerned that, under existing proposals, agents who add another element to a tour operator's package – such as car hire – will need to obtain a Flight Plus licence and charge an additional ATOL Protection Contribution of £2.50.
"This cannot be the Government's intention," said ATIPAC's response to Department for Transport's consultation on ATOL reform, which was published today.
ATIPAC said the move would cause customer confusion. While it accepted that package businesses "have no difficult with the proposal" as they could add the additional elements into the package holiday sale, it said it would cause problems for online businesses and some retailers which would be unable to link the additional purchase to the original within the defined period, consequently the customer would be without protection.
"Pacakge business sales requiring accommodation and flights offered on a 'request' basis may run into difficulties within the proposed timeframe, since the request may not be confirmed within the specified period," it said. "Moreover, one element may not be available, in which case the booking might revert to a single element and then fall outside the Flight Plus definition, although the consumer may continue to believe the booking is protected."
It said that although the Committee agreed the majority of bookings would be made within a 24-hour period, there are significant variations. "However, the Committee was unable to agree on an alternative timeframe," it said. "It therefore concurs with the proposed timeframe set out in the consultation."
Referring to the government's plans to introduce the reforms on January 1, the report said "correct and sustained implementation should not be compromised by continuing with a timescale which results in patchy and generally incomplete cover for consumers".
ATIPAC was set up by the Secretary of State for Transport to advise the CAA, the Trustees of the Air Travel Trust and the government on financial protection for consumers.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airlines suspend Madagascar services following unrest and army revolt
Strike action set to cause travel chaos at Brussels airports
Digital Travel Reporter of the Mirror totally seduced by HotelPlanner AI Travel Agent