ABTA and the Civil Aviation Authority are going head to head in a high court battle that could see travel agents forced to get ATOL bonding even if they sell individual components of a package.
The CAA say even if a retailer sells a flight and accommodation separately and issues separate invoices, it constitutes a package.
ABTA dispute the argument.
If the ruling goes in favour of the CAA, it could potentially halt agents’ ability to dynamically package holidays – a significant growth area. Those flouting such a ruling could even face two years’ imprisonment.
“This would have a major impact on travel agent’s business,” an ABTA spokeswoman said. “If a retailer is pricing a flight and accommodation together and putting it in the window then yes, that’s a package that they will require an ATOL for. But if a customer walks into a shop and the agent offers independent advice and books a hotel and flight separately, then we argue it is not a package.”
It has been suggested that agents may be forced to fork out an additional £250 million in bonding should the CAA win.
The case, which began yesterday, is due to finish today although an immediate decision is not expected.
Report by Steve Jones
