Atol holders are likely to be able to continue issuing Refund Credit Notes (RCNs) in the new year, according to a panel of experts at The Specialist Travel Association (Aito) conference.
In October, the CAA confirmed that Atol holders can continue to issue RCNs with Atol financial protection up to the end of the year.
Sunvil chairman Noel Josephides asked: “This is the number one question: can we get the government to extend RCNs?”
Claire Ingleby, director at MB Law, said: “My instinct is yes, they will be extended. I have been pressing for an early decision.”
Matt Purser, director at Travel Trade Consultancy, agreed that it was likely that RCNs will continue to have protection after the December 31 deadline.
More:End of Refund Credit Notes risks ‘serious cash outflow’
“We’ve seen from previous failures that the CAA helped repatriate customers who were not protected, so I think they will protect RCNs and hope they will be extended,” he told the panel.
“RCNs have helped stop money going out of the door.”
The optimism showed by the panel was in contrast to the views of speakers at the launch of the Travel Weekly Insight Annual Report, who suggested the CAA was unlikely to extend cover for new RCNs after December.
Speakers on the Aito panel also reiterated the need for greater support from government.
Josephides said: “There is no understanding from government that tour operators have been running on air for nine months; it’s all focused on hospitality.
“As soon as corridors or [FCDO] advice changes, we have to give money back.
“We have a government that does not particularly care what happens to the outbound travel industry – we feel that we are pretty expendable.”
He said there needed to be a mechanism for operators to retain some money from cancelled holidays to recognise the resources and effort required to organise a trip.
Ingleby agreed it would be good for operators to retain some margin to reflect the work they have done on a cancelled holiday but couldn’t see how such a mechanism would work.
The panel, which was hosted by Ian Taylor, Travel Weekly’s executive editor, also discussed the Air Travel Trust Fund, the primary source of funding when an Atol holder fails.
It currently has £35 million but once claims have been paid out for recent failures there will be no money left, the panel heard.
Purser said: “The only way I can see more funding is increase in APC (Atol Protection Contribution) for consumers.”