New rule on consumer protection
ABTA Convention Special: New Civil Aviation Authority rules are aiming to plug a loophole in the area of customer protection for package holidays.
Until now travel agents have been able to avoid the need to obtain an air travel organiser’s licence by packaging hotels and flights together but selling separately under a device known as ‘contract splitting’. People buying packages have not been prevented in the event of a failure.
Uner the new rule, agents advertising a hotel and flight as a package will need to obtain an ATOL to protect their clients’ money.
However, some industry bodies feel the new rules do not go far enough.
Travel agents selling a low-cost flight, where the money goes straight to the airline, and a hotel as a separate element, will still not need an ATOL. Neither will low-cost airlines which also sell accommodation.
The Air Travel Insolvency Protection Advisory Committee said: “There is a wider problem to be tackled.”
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