Teletext threatens to pull out of ATOL scheme
Teletext Holidays has warned that it will not reapply for an Air Travel Organisers’ Licence next year unless the ATOL system is dramatically changed.
Managing director Matt Cheevers said the current ATOL scheme is an unfair playing field and the company will have no choice but to pull out unless it sees some changes.
“Unless there is any clarification, we will not apply for an ATOL next year. There are companies out there who are finding a way around the system who are operating more cost efficiently,†he said.
“If we can’t beat them, we will have to join them.â€
He believes other travel companies will do the same due to their dissatisfaction with the protection scheme.
“I don’t think we will be the only company,†he said.
“A lot of companies are feeling incredibly let down by the system. There is currently a two-tier system, with some companies abiding by the package tour regulations and others that are finding ways around that.â€
He said at a time of economic slowdown, when consumers’ buying decisions are even more price-led, ATOL companies are at a competitive disadvantage.
“The whole system is an absolute joke and nobody, not even a large part of the trade, understands it properly. If the trade doesn’t understand it, how the hell can the consumer.â€
Cheevers believes the protection scheme should cover all travel companies and airlines, or be scrapped.
He said consumers could book a package holiday with a tour operator with an ATOL, from a member of ABTA, with a credit card, and with insurance, or supplier failure cover, but still be confused.
“You’re talking about five levels of different of cover and they still don’t have the confidence that they are protected,†said Cheevers.
Teletext got its first ATOL licence this year after launching a travel agency business www.thisistravel.co.uk.
The licence is due for renewal in six months time, but Teletext must decide whether to apply for a renewal by December.
Cheevers said Teletext currently only features holidays from companies which hold ATOLs, but this would also be reviewed unless the system is changed.
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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