The Civil Aviation Authority’s (CAA) defeat in the Travel Republic case will intensify competition between agents and operators, according to the Association of ATOL Companies’ legal adviser Alan Bowen.
Travel Republic was cleared of breaching ATOL regulations by a judge at Westminster Magistrates’ Court on Tuesday.
Speaking at World Travel Market seminar ‘Is this the end of Consumer Protection as we know it?’ today, Bowen said: “If [traditional] operators and [dynamic packaging] agents were operating on different playing fields before, they are on completely different landscapes now.
“For agents, their costs will fall because they do not need an ATOL to sell flights and accommodation. This is a huge opportunity for agents to compete with tour operators.
He added: “Operators will find their markets attacked by agents using this loophole – there are 200 similar websites to Travel Republic out there. It will be the war of the travel agent and the tour operator.”
The CAA may have to put up the ATOL Protection Contribution following its defeat in court, he predicted.
“The Air Travel Trust Fund is already in deficit. If more holidays are being sold outside the ATOL scheme, and there are more failures next year, the CAA may have to increase APC again from £2.50.”