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Member of :
Air Travel Insolvency Protection Advisory Committee
ATIPAC welcomes ATOL reform
Monday, August 01, 2011
The Air Travel Insolvency Protection Advisory Committee (ATIPAC) has welcomed the Government’s proposals to reform ATOL. It has long held the view that the current ATOL protection system had not kept pace with changes in the way holiday travel services are provided and consumers purchase them.
In its Annual Report the Committee supports the intention to introduce the secondary legislation needed to bring sales of flights sold with other elements such as accommodation within the ATOL scheme. It also recognises the importance of bringing in primary legislation so that the protection scheme can be extended to sales made by airlines.
John Cox, Chairman of ATIPAC, said: “Today we publish our eleventh Annual Report, and we are delighted to welcome the publication of the Government’s ATOL reform consultation document. We will seek to work with Government to achieve the greater clarity for travellers that is so urgently needed. One particularly important element of the proposals is the introduction of the ATOL Certificate, which will serve as a single document that consumers will come to recognise and expect when booking an ATOL protected holiday. This proposal on its own will add significantly to consumer clarity.”
The report also looks at the difficult trading conditions for the industry.
John Cox said; “We expect trading in the travel industry to remain difficult during 2011/12, following two very challenging years for the industry and with continuing tight margins expected until at least 2012/13. The Committee continues to be concerned about the fragile state of the holiday market. It is worried about the relationship of GBP Sterling to other key holiday currencies and the high cost of aviation fuel; both these factors have a very significant impact on overall holiday costs. At present, the industry cannot see the position improving.”
In its Annual Report the Committee supports the intention to introduce the secondary legislation needed to bring sales of flights sold with other elements such as accommodation within the ATOL scheme. It also recognises the importance of bringing in primary legislation so that the protection scheme can be extended to sales made by airlines.
John Cox, Chairman of ATIPAC, said: “Today we publish our eleventh Annual Report, and we are delighted to welcome the publication of the Government’s ATOL reform consultation document. We will seek to work with Government to achieve the greater clarity for travellers that is so urgently needed. One particularly important element of the proposals is the introduction of the ATOL Certificate, which will serve as a single document that consumers will come to recognise and expect when booking an ATOL protected holiday. This proposal on its own will add significantly to consumer clarity.”
The report also looks at the difficult trading conditions for the industry.
John Cox said; “We expect trading in the travel industry to remain difficult during 2011/12, following two very challenging years for the industry and with continuing tight margins expected until at least 2012/13. The Committee continues to be concerned about the fragile state of the holiday market. It is worried about the relationship of GBP Sterling to other key holiday currencies and the high cost of aviation fuel; both these factors have a very significant impact on overall holiday costs. At present, the industry cannot see the position improving.”
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