The Civil Aviation Authority has published new consumer protection guidelines for travel agents…
The Civil Aviation Authority has published new consumer protection guidelines for travel agents who sell tailor-made or dynamic packages.
The guidance relates to a change in the law in Autumn 2003, which followed an industry wide consultation on the application and scope of revised ATOL Regulations. The revised Regulations incorporated the definition of a package used in the European Package Travel Regulations (PTR)*.
Travel agents are increasingly offering their own packages in response to changing market conditions, rather than booking their customers with licensed tour operators. But many of these agent-constructed packages are not financially protected and the new guidance makes it clear that in the majority of cases these sales need to be protected by an ATOL to comply with the PTR. As a consequence some travel firms will need to apply for licences for the first time, whilst some existing ATOL holders will need to increase the size of their bonded licence authorisations.
To help travel agents understand the ATOL requirements, the CAA is organising a series of ATOL Open-days during the spring in London, Birmingham, Manchester and Newcastle. These events will enable agents to find out more about the licensing criteria and the trading options open to them. In addition, the CAA will be working with industry bodies to provide information at travel agency forums.
The issue of what is an air package has become increasingly unclear and we are now putting this right by giving straightforward and understandable advice said David Moesli, Deputy Director of the Consumer Protection Group at the CAA.
The change in the law in 2003 brought within ATOL protection many split-package sales where the public could potentially miss out on the financial cover they expect when buying an air holiday. However, with rapid changes in travel sales methods it became clear that more detailed guidance was needed for travel agents and this is published today following discussions with the Department of Trade and Industry (DTI).
David Moesli added: Travel agents now have a number of options open to them; they can offer air packages as retail agents of ATOL holders, including the new and growing number of dynamic packaging systems marketed to agents by ATOL holders. This option has the added re-assurance that an ATOL holder takes overall responsibility for the complete package and its performance. Others may decide to get their own ATOL and put together their own packages using different suppliers, and take overall responsibility for these sales. Some may decide to just continue retailing packages for tour operators in the traditional manner.
Guidance Note 26, entitled `Sale of Air Package Arrangements: Advice on the need to hold an ATOL`, is available on the ATOL website.
For more information contact the CAA Press Office on 0207 453 6030.
* Package Travel, Package Holidays and Package Tours Regulations 1992 (SI 1992/3288).
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
