Agents are being warned of the hidden dangers of the new ATOL scheme due to come into force in January.
The Association of ATOL Companies (AAC) fears the whole ATOL scheme will lose credibility when the government changes come into action and that hundreds of thousands of holidaymakers risk losing their protection.
“Hundreds of thousands who might be visiting friends or relatives or travelling to their own accommodation abroad, stand to lose valuable protection because despite the fact that they are only booking a flight, they will still be charged the usual £2.50 ATOL Contribution fee,†said said Alan Bowen, the AAC’s legal adviser.
“These proposals risk the whole ATOL scheme losing credibility when some ATOL sales will still offer refunds and repatriation and others won’t.
“At present it seems most travel agents and customers have failed to recognise the danger ahead and we urge all those effected to contact their local MP and respond to the consultation.â€
He said the risks have been highlighted by the recent collapse of Holidays 4U and before that the failures of Goldtrail and XL.
AAC chairman David Mortimer said the changes could be disastrous for agents.
“The ramifications of these proposed changes could badly affect the viability of agents, which underlines the importance of everyone participating in the consultation process.â€
The AAC is advising and assisting its members who need guidance in wording their response.
by Bev Fearis
