Tour operators claim they will face lower costs when the £1 ATOL protection charge replaces ATOL bonding from April 1.

Libra Holidays sales and marketing senior manager Riccardo Benzo said the change would allow operators to pay for their actual passengers as opposed to a projected figure of annual passengers, and the reduction could be passed on to customers, although they will be liable for the protection charge.

Seasons in Style managing director Graeme George added luxury operators would be better off as future ATOL charges will be based on customer numbers, not the value of the holiday.