TTA Worldchoice members were warned not to start operating outside the ATOL scheme on the back of the not-guilty verdict in the Travel Republic case.
The online travel agency and its director Kane Pirie were cleared of breaching ATOL regulations by a judge at Westminster Magistrates’ Court earlier this month, following a case brought by the Civil Aviation Authority (CAA).
Some believe the ruling has cleared the way for travel companies with a similar business model to Travel Republic to sell dynamic packages without an ATOL.
However, speaking at the TTA Worldchoice annual conference at Heathrow today, TTA Worldchoice managing director Simon Hargreaves said fewer companies using financial protection would be the “worst thing that could happen to our industry”.
He said: “I won’t condone companies trying to fight the regulations.”
Operations director Gary Lewis said the Travel Republic verdict should not be taken as a sign that travel companies do not need an ATOL. He said there was still a chance the ruling could be overturned by a higher court, following the CAA’s decision this week to appeal the verdict.
“The judge said the magistrates’ court was not the right place to make a decision. You absolutely need your ATOL; you don’t want to get dragged into the confusion going on in the industry.”
He told delegates the Department for Transport (DfT) consultation, due to take place in December, would give more clarity on the issue of financial protection.
“The DfT consultation will mean if you sell a flight and another product you will need an ATOL….this is expected to be in place by March 2010. That means Travel Republic and companies like them will have to have an ATOL,” he said.
Hargreaves said the consortium had decided against introducing a group ATOL licence for Worldchoice, whose members are now using a third party ATOL called Trust Trips provided by tour operator Flexible Trips.
“Trust Trips has been a big success but it is not finished. We have to expand its scope,” said Hargreaves.
The consortium has also unveiled new software to help members stay within ATOL regulations. The ‘Angel’ package will be available free to TTA Worldchoice members.