THE CIVIL Aviation Authority is set to embark on the
biggest shake-up of the ATOL regulations since they were introduced 30 years
ago.
The authority has launched a consultation
paper asking the trade how and to what extent holidays should be protected
against the failure of travel firms. It wants views on whether ATOLs are still
relevant in today’s market amid growing concerns over self-packaging and public
confusion over financial protection.
An increasing number of people are putting together
their own package believing they will be protected if something goes wrong. Director
of the consumer protection group Helen Simpson said: “We think the time is
right for a thorough reappraisal of how holidays are protected.
“Although ATOLs have worked well, the number of people
they are not helping is increasing and that needs to be addressed.”
The CAA hasn’t made any proposals in the consultation
because it is keen to hear the whole industry’s opinion, including agents, tour
operators, airlines and hotels. It will take the results of the consultation to
the Government with the aim of forcing through primary legislation to modernise
holiday protection.