The Government Plans To Protect More Holidaymakers
The Government Plans To Protect More Holidaymakers
The coalition government has unveiled plans to increase protection for holidaymakers. The proposals follow a lengthy consultation which was started by the previous government in 2009.
Currently, the ATOL (Air Travel Organisers Licence) scheme, which is administered by the Civil Aviation Authority, only provides protection when a holiday company goes bust if the holidaymaker booked a traditional package holiday. Some flight-only bookings are also covered but the majority are not. This causes problems when a holiday company runs into financial troubles for the thousands of consumers who have not arranged their holiday as a package.
Under the proposed new rules holidaymakers will benefit from additional protection:
A new category of 'flight plus' holiday will be created under the ATOL scheme. This would cover holidays including a flight where the various elements were purchased within a specified short time period, and so look similar to package holidays, but are not packages in the traditional sense.
Improvements in the information provided to consumers at the time of booking. The new rules will require travel agents to make it clear when ATOL protection will not apply.
Standardised booking documentation so it is clear to consumers whether their holiday has ATOL protection.
The growth in internet holiday sales has led to many holidaymakers having no means of redress. This is because they book holidays with web-based travel agents and operators who are not required to hold an ATOL licence. These holidays appear to be traditional packages with web-based travel agents and operators but in fact constitute a series of separate contracts for the provision of flights, accommodation and other holiday services.
A recent case involving Travel Republic highlights the difficulties for consumers here. Travel Republic successfully argued they do not need to hold an ATOL licence as they do not sell package holidays. Where they do sell package holidays they will do so as agent for one of the major tour operators.
There will now be a short period of consultation before the proposed changes become law. The government's plans come at a time when the European Commission is considering changes to the Package Travel, Package Holidays and Package Tours Regulations 1992 which regulate the relationship between consumers and the tour operators they book their holidays with.