ABTA confused by new CAA guidance

ABTA says new guidance issued jointly by the Civil Aviation Authority and the Office of Fair Trading to prevent travel companies accidentally falling foul of the law is contradictory and confusing for agents who sell both licensed and non-licensed travel.

The document, it says, suggests that ATOL holders who also sell non-ATOL product should not use the ATOL Protected logo.

However, the CAA requires those who sell any licensed product to use the logo.

ABTA’s head of legal and member services Simon Bunce said: "We support the emphasis given to clarifying what financial protection is in place and the warning against generic protection statements where not all services are protected, however, and we referred to this point in our consultation response, we are concerned that the guidance appears to suggest that ATOL holders who also sell non-ATOL product, which we suspect is the majority, should not use the ‘ATOL Protected’ logo, which is required by the CAA.

"This contradiction needs clarification and we will take this up again with the OFT and CAA."

He also pointed out that some of the the guidelines around information provision may prove technically difficult for travel companies with smartphone and iPad apps due to screen size limitations but he added: We are sure the OFT and CAA will take a sensible approach reflecting the actual impact on consumers.

The CAA and the OFT intend to start policing travel companies’ websites and promotional material to make sure they are following the rules.

They said that companies must provide consumers with clear, transparent and timely information when advertising and selling flights and holidays.

The guidance is aimed at airlines, price comparison websites, travel agents and tour operators, and is designed to make sure the travel industry is fully aware of its responsibilities under existing consumer legislation.

The document makes clear that the travel industry must provide consumers with the information they need, when they need it and in a transparent way they can clearly understand. The guidance also sets out how the enforcement process works if regulations are breached such that further action may be necessary.

Key points of the guidance include reminders to the travel industry that:

• All unavoidable and foreseeable charges for flights must be included in the headline price – this includes taxes, fees and any other mandatory charges such as a booking fee.
• Information on optional extras such as baggage and seat selection charges must be clearly available from the first stage of the booking process.
• Consumers must be free to choose these optional extras – they cannot be pre-selected.
• The name of the airline travellers will be flying with must be displayed from the start of the booking process.
• Information on the financial protection arrangements for the booking and other key information must be made clear to consumers.
• Terms and conditions relating to a booking must be clearly available and easy to understand

Iain Osborne, CAA group director for regulatory policy, said: "Consumers should be able to make informed choices when booking their holidays – based on clear and transparent information provided by their travel company.

"In most cases, travel companies are providing information in this way and people can select the flights and holidays that best suit their needs.

"But to make sure no-one is misled about what they are buying in the future, we have worked with the OFT to produce this guidance and ensure the travel industry is fully aware of its legal obligations to consumers."

Cavendish Elithorn, senior director of the OFT’s Goods and Consumer group, said: "Booking a holiday should be simple. People should be able to make a clear choice and should not be surprised by hidden charges or conditions after they have booked or arrived at their resort or destination. Our guidance makes life easier for consumers by leaving the travel industry in no doubt about its responsibilities."

Publication of the guidance follows a 10-week consultation, during which the travel industry had the opportunity to provide feedback on the proposed document. The OFT and CAA amended the guidance to reflect the views received, and two versions of the guidance are now available: an in-depth guidance document and a shorter version for quick reference.