Agents to receive ATOL rebates
ATOL accredited bodies are due to receive refunds from the Air Travel Trust Fund after it agreed to repay 50% of the £2.50 ATOL Protection Charge (APC) on bookings made by their members.
Advantage, Barrhead, Broadway, Freedom Travel Group, Hays, Midcounties and Travel Counsellors will all receive rebates of £1.25 for each ATOL-protected booking made since May last year.
Under the terms of the CAA licence, the eight accredited bodies are responsible for all the ATOL sales made by their 1,300-plus members, so if the travel firm fails the accredited bodies must cover the financial loss, including repatriating passengers and providing refunds or suitable alternative arrangements for customers still to travel.
The trustees of the Air Travel Trust agreed that as accredited bodies have been obliged to operate trust accounts since May 2014, they represent a reduced financial risk to the Air Travel Trust Fund.
It also recognised that setting up the accounts was a considerably cost for the accredited bodies.
Head of ATOL Andy Cohen said: "As a result, the trustees of the ATT have considered how it should recognise this increased resilience, and has decided to pay an AB [accredited body] a service charge of £1.25 for each ATOL booking taken."
Members will continue to be charged £2.50 per booking but the accredited bodies will then receive a ‘service charge’ of £1.25.
Advantage managing director Julia Lo-Bue Said added: "The announcement by the CAA today demonstrates the significant role AB’s play in the sector, in providing financial guarantees to the CAA and amechanism for independent businesses to flourish.
"Our robust processes and provision of a trust, provide enhance security to the CAA in comparison to standard ATOL holders and this rebate recognises this.
"The rebate will contribute to Advantage’s continually investment in its scheme, improving processes and investing in our infrastructure."
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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