Call to expand scope of ATOL protection
Monday, 21 Jul, 2009
0
Concern about the confusion over financial protection provided to air passengers has been highlighted in a new report.
The Air Travel Insolvency Protection Advisory Committee (ATIPAC) said it “fully endorses” proposals to reform the ATOL regime to give consumers greater clarity.
The committee’s ninth annual report examines the challenges faced by the travel industry over the last year.
It highlights the 46 ATOL holders which ceased trading over the year, 21 more than the previous year.
The ATOL scheme enabled 47,712 customers of failed tour operators to continue their holidays and travel home and refunded a further 240,165 who had made advance payments but had yet to travel.
There is also an examination of the effects of the increase in the rate of the ATOL Prpotection Contribution from £1 to £2.50 from October to help bolster the back-up Air Travel Trust (see previous TravelMole story).
ATIPAC chairman John Cox said: “The committee has a long standing concern over the confusion experienced by consumers over their financial protection arrangements when booking an air holiday.
“Too many consumers do not realise that in some cases their holiday arrangements are unprotected and often only realise the fact when they are abroad and have a problem.
“This issue has been evidenced in recent travel failures, where customers are separately contracted for their flights and accommodation, and the failure of one of the suppliers has the potential to leave consumers out of pocket by thousands of pounds.
“The reform proposals are a real chance to address this issue. Expanding the scope of ATOL so that all flights sold with another holiday component, such as accommodation or car hire, (known as ‘flight plus’) will help to end the current confusion.
“The committee urges all parties, the Government, the travel industry and the CAA to work together to ensure the reform proposals go ahead for the benefit of both consumers and industry.”
He added: “The difficult economic conditions have put real pressure on the travel industry and inevitably some companies have failed to survive, with the most obvious example being the collapse of XL in September 2008.
“In all cases customers abroad, who had booked with an ATOL holder, were repatriated at no additional cost and those yet to travel are being refunded. Regrettably those that were not financially protected by ATOL have found themselves out of pocket.”
Commenting on the increase in the APC rate, he said: “An increase so soon after it was introduced is unfortunate and will undoubtedly lead to an increase in the costs of financial protection for the largest tour operators and medium sized and smaller operators are likely to see their costs return to pre- APC levels.
“However, following the economic downturn and the failure of XL it is vital that the Air Travel Trust is returned to a sustainable balance and that air travellers are properly financially protected.”
by Phil Davies
Phil Davies
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 
Clearing CSS/JS assets' cache... Please wait until this notice disappears...
Updating... Please wait...
France prepares for a massive strike across all transports on September 18
Turkish tourism stalls due to soaring prices for accommodation and food
CCS Insight: eSIMs ready to take the travel world by storm
Germany new European Entry/Exit System limited to a single airport on October 12, 2025
Airlines suspend Madagascar services following unrest and army revolt