A single licensing scheme to cover all leisure travel bookings will provide holidaymakers with more robust protection and cut travel industry costs, ATIPAC told the Government this week.
The Air Travel Insolvency Protection Advisory Committee, whose membership consists of both consumers and travel industry members, said there was a need for a simple, clear and transparent scheme for financial protection.
Publishing its response to the call for evidence by the Department for Transport on the review of the Package Travel Directive and ATOL implementation and funding arrangements, ATIPAC said a single licensing regime should there should also be a single point of contact for consumers when a travel company collapses.
It said it recognised the current protection arrangements in the UK were outdated, but it added they weren’t broken.
Chair John Cox said: "Financial protection for holidaymakers and air travellers is a complex issue and ATIPAC has campaigned for some years for improvements to give greater fairness and clarity to consumers and the travel industry.
"The Committee believes the Government needs to ensure that any changes improve on the current financial protection arrangements and provide a simple and clear message on protection for all holidaymakers, regardless of their form of travel.
"There is evidence that a single regulatory scheme covering all holiday arrangements will bring a simple and more robust protection mechanism for consumers as well as reducing overall industry compliance costs whilst maintaining the current level of protection which consumers expect."
ATIPAC urged the Government to publish all responses to its Call for Evidence as soon as possible and to set out a timetable for next steps so both consumers and the industry can consider in more detail further changes to financial protection arrangements in the future.
