Agents have attacked plans by the Civil Aviation Authority to increase the £1 ATOL Protection Contribution.
Bath Travel managing director Stephen Bath said if APC were to be increased, the CAA would need to be completely transparent about its recent accounts to prove there is a need for the move.
He added: “If they want to have an increase then they need to show XL Leisure Group was not sufficiently covered by a massive bond. They need to show some clear figures to show they need these increases.”
South West Independent Federation of Travel Agents spokesman Anthony Goord said customers are already paying enough for financial protection. He added: “Customers think holidays are getting more complicated as there are fuel surcharges and optional charitable donations to explain.
“We want to talk to travellers about their holidays and not spend all our time explaining the charges.”
Association of Independent Tour Operators Specialist Travel Agents chairman Barry Moxley said the news confirms concerns among the industry at the time of the £1 levy’s introduction that it would be increased.
He added: “Anything that affects the demand for holidays is likely to have an effect on us at a time when the government is supposedly on the side of small businesses.”
The Co-operative Travel Group commercial director Shaun Hinds said the group has long warned the levy could be increased but suggested the CAA would have to settle the Travel Republic and XL cases before it would consider any increases.