Hope of a speedy reform and extension of consumer financial protection for holidaymakers under the ATOL scheme is growing, but changes will not be in place before next spring.
Industry rumours that reform might be accomplished by the end of the year are misplaced, according to sources close to the process.
The Civil Aviation Authority (CAA) consumer protection group will consult informally with leading industry figures next month as it assists the Department for Transport in drafting proposals for a consultation on ATOL reform promised in the autumn.
This follows the recent announcement of a rise in the ATOL Protection Contribution on tour operators’ holidays to £2.50 from October 1.
ABTA’s proposal of extending ATOL protection to sales of all flights, plus another holiday component – the so-called ‘flight-plus” option’ – will form the basis of the reform. But this will require legislative change to the ATOL Regulations and removal or reform of a clause added as an amendment in 2003.
That will require a 12-week consultation that will extend over Christmas. Travel Weekly’s sources describe the change envisaged as “fundamental” and warn that a rushed process could be open to judicial review.
ABTA has written to members urging they support the proposal, with chairman John McEwan arguing: “We have a real opportunity to effect a step-change with regard to consumer financial protection.”
However, it is anticipated a portion of the trade will oppose the proposed reform.
Political considerations may also play a role in Department for Transport thinking on implementation, ahead of a general election that is likely in early May – with next April the earliest deadline for a reformed ATOL scheme to be in place.
However, shadow transport secretary Theresa Villiers told Travel Weekly last week that there is cross-party consensus on ATOL reform, meaning a change of government might delay, but should not jeopardise, the process.