ATOL changes 'don't go far enough'

Posted 25/06/2011

ABTA chief executive Mark Tanzer and other industry heavyweights are calling on the Government to go even further with its ATOL reform following the publication of a consultation paper yesterday.

Tanzer said he is still concerned that the exclusion of airlines and the lack of clarity around click-through arrangements will leave many consumers unprotected, and will distort competition in the market.

"It's encouraging that the consultation explicitly acknowledges this as an issue, and it's critical that the consultation process results in a Government commitment to bringing airlines into scope."

He said ABTA would now work through the detail of the proposals with members to "make sure that what emerges is practical and fair".

"ABTA has long advocated the broadening of consumer protection, but much work remains to be done before we can endorse the proposals as a workable and affordable solution," he said.

The Department for Transport’s proposals for reform of the ATOL scheme for flight-based package holidays was unveiled this morning (see earlier story).

In it, the Government recognised that inclusion of airlines in the scheme would “provide complete clarity for consumers” and that it will consider primary legislation to effect this.

ABTA said it believes that there will be no comprehensive solution until all airlines protect their flights against insolvency risk.

TUI said it fully supports the intention to extend the ATOL scheme to ‘flight-plus’ holidays which comprise of a flight and other holiday component.

"We also endorse the decision by Government to consider widening ATOL protection to include holidays sold by airlines," said a spokesman.



"Only once such a step has been taken can customers benefit from a truly level playing field. In addition, we welcome the Government’s intention to legislate to prevent those who might seek to avoid the ATOL scheme by claiming to act as an agent for a customer."


Bob Atkinson, travel expert at travelsupermarket.com, said the reforms still leave too many people without protection from the CAA schemes.

"Additionally many people booking flights on an independent basis or those booking via airline sites where they add hotels and car hire at a later date will not appear to be protected.

"This has to be addressed once and for all in order that consumers can understood easily their rights. It is ludicrous that two people can sit next to each other on the same plane having booked in different ways and find that one has rights and the other has not."

But he said the industry must embrace the intention of the reforms and work with the DFT to develop the proposals.

"In the meantime, UK consumers will continue to make bookings for 2011, often misled or misunderstanding what protection they have."


By Bev Fearis







 

Originally published 25 Jun 2011 at: http://rss.feedsportal.com/c/398/f/5923/s/1625840e/l/0L0Stravelmole0N0Cstories0C11482290Bphp0Dmpnlog0F1/story01.htm