Trade urges Government to re-think ATOL reform
Travel bodies have urged the Government to re-think its proposed ATOL reforms, which they say will leave customers confused and, in some cases, with less protection than at present.
As the consultation process closed, Thomas Cook added its voice to those who have claimed that reforms proposed by the Department of Transport do not go far enough.
Director of government and external affairs Andy Cooper said: "We welcome the proposed reform of the ATOL scheme, and support the government's desire to protect more consumers from travel company failures.
"However, the proposals in their current form at best do not go far enough, and at worst will cause widespread confusion for travellers.
"Not only will holidaymakers be on board with seat-only passengers who have no protection, but the proposed 'flight plus' only applies if bought from a travel agent or tour operator – airlines will now be able to offer identical holidays without protection.
"Add to that the removal of flight-only protection of advance payments of those yet to travel and very tight timescales of implementation and it's a recipe for customer confusion and distrust of an industry that is no stranger to business failures.
"We maintain that the simplest solution is to protect all air travel, whether flight only or package holiday, and urge the government to start the process of primary legislation to achieve this."
The Association of ATOL Companies (AAC) warned that over one million passengers may lose existing protection against financial loss when buying a flight on its own.
It recommended that refunds continue to be available under the ATOL scheme for sales by IATA agents selling under an ATOL.
‘As currently drafted, customers will pay the usual £2.50 APC and have the right to expect the same level of protection’ said AAC legal advisor Alan Bowen. "At present, 2012 could see passengers losing existing rights and the creation of different classes of ATOL customers, far from increasing clarity, this will add to consumer confusion."
The AAC also joined other bodies in warning that a deadline of January 2012 for the introduction of the reforms was unrealistic. "Our members have made it clear the necessary changes to IT systems need time to be developed and we believe April 2012 is the earliest realistic start date," said Bowen. "We do not want to see a botched introduction which damages the reputation of all ATOL holders."
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
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