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Plan to regulate online bookings

CLICK-THROUGH accommodation bookings made
via airlines’ websites will come under the ATOL system as part of radical new
plans drawn up by the Civil Aviation Authority.

In its final recommendation to the Government on the future
of ATOLs, the CAA surprised the trade by dramatically extending the scope of
protection it originally proposed.

The CAA was not expected to stray from its draft
advice issued in March, which suggested only return international flights,
originating in the UK and paid for in advance, should be brought under the
regulations.

Deputy head of consumer protection David Moesli said:
“This was a point raised by the travel trade following the draft proposal.

“It is an area where there is clearly some confusion
because people click through to an airline-branded accommodation website and
think they are booking a package.”

However, accommodation not booked via an airline’s
website or booked directly with a hotel chain will not be covered.

The move is one of several changes made to the
original proposal. Domestic flights are no longer included in the recommendations
because fares are considerably cheaper than international flights and
passengers can get themselves home easily.

The CAA has also called for interim measures to be
installed because the Government is not expected to legislate until 2006 at the
earliest. It wants airlines to promise on a voluntary basis to help repatriate
stranded passengers for free if a competitor goes bust, explore whether travel
insurance policies can be extended to cover airline failures and arrange for
hotel accommodation sold with flights to be sold through an ATOL holder.  

The CAA won’t expand on the
proposals until the Government has indicated whether they will be accepted,
although it hinted a levy per person would be the preferred option. “We think
consumers would easily understand a levy and it would be simpler to administer
than other options,” said Moesli.

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