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Apartmentsabroad.com “may get ATOL cover” for dynamic packaging
Apartmentsabroad.com is considering obtaining an ATOL to cover up to 20,000 packages which could be created by agents using its new Travelhawk dynamic packaging tool.
The company is weighing up bonding options following the August launch of Travelhawk which extended its business model from accommodation-only to incorporate flight, car hire and airport transfer search facilities.
Because Travelhawk offers search facilities for holiday components which can then be booked separately, agents need not necessarily require ATOL protection, but will do if they want to pre-package those components.
Apartmentsabroad.com already protects its accommodation-only sales with an independent trust fund.
Managing director Ian Thirlwall said a decision would be made before Christmas so that an ATOL could be in place in time for summer 2005.
He said: “We’re looking at the pros and cons of the ATOL system in the light of the expansion of the services we now provide to agents courtesy of Travelhawk.
“Our accommodation-only sales are already protected via an independently administered trust fund but we are actively examining the viability of extending protection to fares which may be accessed via Travelhawk.
“The upside is that an ATOL would cover flights offered by over 50 scheduled and low cost airlines and our accommodation portfolio which spans nearly 50 countries. That would undoubtedly give us the edge over traditional package operators and integrated groups who offer ATOL cover to agents but only if they exclusively buy products provided by themselves.
“The downside would obviously be the significant additional costs which bonding would incur and the impact that may have within a very price sensitive marketplace.”
Report by Phil Davies
Phil Davies
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