Travel retailers face restructuring the way they do business in the wake of a new interpretation of the Court of Appeal’s October 2006 ruling on dynamic packaging.
Industry leaders were consulting lawyers and in talks with the Civil Aviation Authority this week as they digested a CAA interpretation of the ruling that casts fresh doubt over the legality of dynamic packaging without an ATOL.
In a statement, the CAA said: “Dynamic packages which include flights require ATOL protection.”
ABTA responded with a statement saying the CAA had only reported “what we know already – that dynamically packaged holidays involving flights require an ATOL licence.” But it added: “Not all dynamic or tailor-made travel arrangements are packages.”
However, the CAA insisted: “Travel components sold in combination and at a price which covers all of the components are a package.”
CAA consumer protection group director Richard Jackson said: “The issue is whether components are offered in combination. If retailers sell individual holiday components not in combination, it will not be a package. But there could be a problem if they say ‘I’ll put that together for you’.
“Whether components of a holiday are sold in combination will be subject to interpretation case by case.”
Asked what certain paragraphs of the ruling will mean in practice, Jackson said: “I’ve no idea. There is apparent contradiction. I hope we and the trade can agree on a wayforward.”
If there is no agreement, he added: “I don’t doubt there will be a dispute between a traveller and a travel organiser about whether they have been sold components of a holiday or a package.”
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