ABTA and CAA in high court 'package' battle - TravelMole


ABTA and CAA in high court ‘package’ battle

Saturday, 09 Nov, 2005 0

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



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