The Civil Aviation Authority claims its new ATOL guidance
will set out in “plain English” what agents can and
can’t sell.
Unveiled to the trade this week, the consumer protection guidelines
aim to clarify the law and stamp out packages sold without ATOL
coverage.
The guidelines mean if agents want to sell clients a flight and
accommodation that is not provided by a single ATOL holder, the
agent will, in the vast majority of cases, have to apply for an
ATOL or increase their existing licence.
The are a few exceptions for example where a customer approaches an
agent with specific requests, such as a named hotel and flight
number, or where a customer buys a flight and returns at a later
date to buy accommodation.
CAA consumer protection group deputy director David Moesli said the
guidelines clarified in “plain English” what agents
need to do if they go down the dynamic packaging route.
“The industry is now seeing a breakdown in the definition of
a travel agent and a tour operator. The old definition of a travel
agent selling other people’s packages is starting to go, the
lines are blurring,” he said.
“The CAA is required to enforce regulations and we have no
choice but to do so,” he added.
The guidelines have been put together by a team of legal advisers
who consulted with ABTA, the Federation of Tour Operators and the
Association of Independent Tour Operators.
The guidance follows amendments made to the Civil Aviation
Regulations 1995 in autumn 2003, designed to tackle
split-contracting.
However, the lack of clarity over what the regulations covered and
the rise of dynamic packaging have forced the CAA clampdown.
“With rapid changes in travel sales methods, it became clear
more detailed guidance was needed for agents,” said Moesli.
He said many agents had turned a “blind eye” or
hadn’t given a “second thought” to the
regulations in place, but others had worked to set up the tools to
dynamically package with ATOL coverage such as Thomas Cook’s
Flexibletrips.com.