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Consumers back £1 levy on package holidays

Two-thirds of holidaymakers are willing to pay the proposed £1 levy on package holidays to ensure peace of mind, according to a TNS Travel and Tourism survey.


More than 1,000 people were interviewed face to face from August 31 to September 4 this year as part of the TNS Omnibus survey, which showed 66% of respondents would be happy to pay extra for the reassurance of financial protection on holiday if their travel company collapses.


Meanwhile, 19% did not want to pay extra, and 15% were undecided.


The number of holiday-makers happy to pay the £1 ATOL Protection Contribution – to be introduced from April 2008 to replace the ATOL bond system – increased to 73% among respondents who had recently taken a package holiday.


However, 59% of holidaymakers did not want to pay anything extra, claiming the tour operator should pay the extra charge.


TNS head of travel and tourism in the UK Tom Costley said: “As would be expected, there is a reluctance among holidaymakers to volunteer to pay an additional charge.


“However, when positioned as a means of ensuring peace of mind in the event of difficulties with their holiday operator, there is little doubt the levy is considered a sensible option.”


Respondents were also asked whether the charge should apply to both package holidays and independently arranged flights 55% agreed it should be applied to both and 23% disagreed.


News that a £1 ATOL Protection Contribution on packages will replace ATOL bonding from April 1 2008, was announced at the end of August. While broadly welcomed by the trade, many said it was an unlevel playing field because scheduled and low-cost airlines will not be covered by the ATOL Protection Contribution.

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