The Association of Atol Companies chairman, David Mortimer, on the ATOL reforms announced yesterday.
"The AAC has voiced its wholehearted support for the proposals which the organisation considers are going a long way to clarifying and simplifying consumer protection.
‘Flight Plus’ will ensure that the sale of a flight and any other service booked at the same, or before close of business the following day, will require the protection of a single ATOL licence.
Carrying the same requirements as the existing ATOL, which is to ensure that if any supplier fails the ATOL holder either offers a full refund or replaces the flight, accommodation and any other element that has been lost, the change is proposed to be introduced as secondary legislation by the end of 2011. We are pleased to see that all ATOL licences will be similar in the level of responsibility they carry towards the consumer.
The AAC believes the proposals may be an opportunity for existing ATOL holders to increase their business by offering to dynamically package for travel agents.
It is, however, a wake up call for those agents who in the past have wanted to act as though they were principals, but not take any responsibility if things go wrong
We welcome these proposals because we think it should herald the end of situations whereby consumers find they have bought parts of holidays which look like a holiday package contract, but when an airline fails, they discover they have lost part of the booking, such as the accommodation, which has been booked by an agent under a separate contract.
We call on agents to decide which side of the fence they want to fall, and if they want the benefits they must also be aware of the risks.
We also welcome the fact that the CAA appears to have taken on board their view that seat only business should stay within the remit of ATOL."
