Travel agencies with an annual turnover of less than £150,000 will be better off not applying for an ATOL, independent agents were told today.
Half of Advantage members are already licensed and the cosortium’s financial operations manager Paul Nunn said of the remaining 170 of the consortium’s membership, 160 would need a licence to comply with the new Flight Plus regulations coming into force on Monday.
But he said the costs of applying for a Flight Plus ATOL would outweigh the benefits for smaller shops.
"Companies need to work out their figures before applying for an ATOL; if their turnover is less than £150,000 it won’t be worth it because of the costs involved," he said.
Since it scrapped plans to apply for an umbrella ATOL for all members, Advantage is recommending those with licensable turnover of up to £1.5m join the ABTA-CAA Joint Administration Scheme (JAS).
For larger members, it is recommending they join the TravTrust scheme.
by Linsey McNeill
