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ATOL protection levels decline by 5.7%
As many as 18 million people are flying on holiday without official safeguards against travel company failure.
The warning came from the Civil Aviation Authority while releasing figures showing a drop in the number of travellers protected by ATOL.
CAA figures show that 26.7 million holidaymakers and air travellers were ATOL-protected in the year to March 2006, a reduction of 5.7% year-on-year.
The Summer 2006 edition of ATOL Business also revealed that turnover for all ATOL holders for the year to March 2006 declined by less than 1% with the average holiday price increasing by 5.5% to £525.
The CAA figures also show that only 60% of all leisure air travellers were ATOL-protected – down from 61% in January 2006. The CAA estimates that over 18 million leisure air travellers now fly without ATOL protection.
This was despite number of travel firms providing ATOL protection increasing by 8% to 2,520.
The research found that ATOL-protected scheduled flights sold by consolidators fell significantly with an 11% drop in carryings.
The CAA said forecast passenger figures for the top four ATOL holder groups (major tour operators) are static at 13.8 million passengers, maintaining their market share at 46%.
CAA consumer protection group deputy director David Moesli said: “The figures highlighted in today’s ATOL Business reflect planned reductions in holiday capacity by some tour operators who are responding to changing market conditions. Some operators have increased capacity through organic growth and acquisition.
“The number of people enjoying ATOL protection remains fairly constant at around 27 million holidaymakers a year, but continued growth in leisure air bookings with airlines highlights the fact that ATOL now covers a smaller proportion of leisure air travel.”
Report by Phil Davies
Phil Davies
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