The £1 ATOL Protection Contribution levy introduced on April 1 provides an opportunity for agents to maximise their profits, according to Hays Travel managing director John Hays.
Hays Travel will act as principal and ATOL holder on all dynamic packages,including the flight, booked by members of the Independence Group.
“By offering a bundled price, agents can have control over their margins. This could lead to a more profitable business,“ said Hays.
Agencies should ensure customers know they can get their holiday cheaper with a dynamic package.
He said: “At Hays Travel retail shops, staff will be using the slogan ‘would you like me to package it the Hays way?‘ You could use something similar.”
He admitted the new arrangements would change agents’ lives “dramatically”and urged the membersto take their responsibilities seriously.
“We have been visited by the Civil Aviation Authority and they fully intend to enforce this. If [the rule]was breached, we would be facing criminal rather than civil chargesa nd Hays would be liable.”
The new levy could also benefit the Independence Group, as other consortia will be ill-equipped to deal with the change, he said.
“It would be difficult for Worldchoice and Global to have a group ATOL. We’ve got the structure in place. This gives us a definite advantage. Other agents will really struggle but [Independence members will] be able to comply quickly and easily.”
The name of every Independence Group member will be registered as a trading name and bookings will be reported monthly to ATOL. Agencies will also pay a charge for using Hays’ ATOL. The amount is yet to be confirmed.
Hays Travel will recruit an in-house lawyer to ensure it meets all the requirements.