ABTA has called for the Civil Aviation Authority (CAA) to delay increasing the £1 levy to £3 until the full cost of the XL Leisure Group failure is known.
The association said the CAA will only know how much money is needed to build up the Air Travel Trust Fund once all claims have been processed. Consumers have until September to claim for their holiday – one year after the XL collapse.
Responding to the CAA’s consultation on the ATOL Protection Contribution hike, ABTA also called for the levy to be extended to cover more holidaymakers, including those buying flights plus accommodation, rather than a package.
ABTA chief executive Mark Tanzer said: “This consultation process is a much-needed opportunity for the trade to make its views known. We would urge the CAA and the government to simplify and widen consumer protection.
“This would benefit both the industry and customers, for whom the present system is confusing and full of holes.”