Industry gets head start on ATOL reforms
The industry will be given time to adopt ATOL reforms before a big consumer campaign in autumn 2012.
The CAA published a paper yesterday outlining the proposed ATOL reforms to prepare the industry for its implementation next April.
The Information Paper spells out various reforms including the Department of Transport’s ‘Flight-Plus’ scheme covering air holidays not currently protected.
The CAA is working on a programme of workshops and seminars to help industry staff from front line travel agents to senior management understand the proposals and how they will affect their businesses.
Once the scheme has settled down, it plans to launch a consumer awareness campaign in Autumn 2012 ahead of the 2013 peak booking period.
The ‘Flight Plus’ scheme – which covers flights and other components such as accommodation and car hire – means that all customers booking ATOL-protected holidays will be eligible for repatriation and refund.
This also applies to customers booking ‘Flight-only’.
Agents can either be ATOL holders or be covered under an approved body such as a trade association which holds the ATOL.
But in a bid to close down the loophole caused by ‘agents for consumers’ , the CAA says customers booking flights and separate components through a retailer which is not ATOL protected will only be covered for repatriation.
The Department of Transport plans to introduce an ‘ATOL Certificate’ to be issued at point of sale which will outline what is covered by the ATOL.
Customers covered by a ‘Flight-Only’ ATOL will be warned that if they were sold other elements alongside, their flight will not be eligible for refund.
Richard Jackson, director of consumer protection at the CAA said: "We will be working with the travel industry to help them fully understand the proposals, so they are ready to implement them next April.
“In advance of final decisions from the Government, we will be working closely with the travel trade to get their input on these proposals. We plan to consult formally on them in the new year."
The CAA is now looking for industry feedback ahead of a six-week consultation to be held in the New Year.
Final details on the planned reforms will be published before the end of 2011.
Mark Tanzar, ABTA chief executive said: "It is critical that the Government gives a clear commitment to include holiday sales by airlines within the scope of protection.
“There is still much to be done: the detail behind concepts like 'approved bodies' and the payment policies of the Air Travel Trust Fund trustees are key to determining the workability of the scheme."
By Diane Evans
Diane
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