InteleTravel has called on the Civil Aviation Authority (CAA) to urgently clarify the Atol protection status of holiday packages being sold by agents in the Channel Islands and Isle of Man.
Confusion about Atol cover for packages sold to consumers in Jersey, Guernsey and the Isle of Man arose after Abta circulated a notice to members late last year.
It said that sales made to customers in Jersey, Guernsey and the Isle of Man – which are Crown Dependencies – are not covered by Atol regulations.
More: CAA launches peaks Atol campaign amid ‘growth in bookings’
CAA confirms delay to Atol Reform consultation
“These territories are not part of the UK, therefore the regulations don’t apply. This includes holidays where customers from those territories travel to the UK and depart on a flight from the UK,” said the notice.
“Travel agents and tour operators selling to customers located in Jersey, Guernsey and the Isle of Man should not refer to Atol protection and should not issue Atol certificates in respect of those sales.
“We recommend that Atol holders needing further clarification should speak to the CAA through their usual contact.”
When InteleTravel contacted the CAA, the authority replied that sales to consumers resident in the Crown Dependencies are not within the scope of Atol – but the reply continued: “However, it is my understanding is that the Atol scheme will cover sales that will have been made by Atol holders to consumers resident in the Crown Dependencies up to the CAA’s issue of expanded advice on such sales, which I expect all Atol holders to be informed of via the Atol website and/or by direct communication.”
A date for this “expanded advice” was not given but InteleTravel was told it would be “soon”.
Tricia Handley-Hughes, UK & Ireland managing director at InteleTravel, said the homeworking group has 70 agents in the Channel Islands and Isle of Man, who were concerned about the matter.
“For travel sales purposes, the Channel Isles have been viewed as regions within the UK – until now,” she said.
“Clearly the true Crown Dependency definition, if imposed, does raise concerns over the level of ‘internal’ legislation that may be imposed and the effect on UK agents.
“The CAA has confirmed it’s business as normal and flight-inclusive packages continue to be protected under the licence of the Atol holder until they provide formal communication.
“But the concern for our agents will be looking ahead to future bookings.
“Consumers expect financial protection and being unable to offer this will affect the livelihood of agents selling in the Channel Isles. I hope we will see clarification very soon, especially as we are in the midst of peaks.”
She said InteleTravel is communicating via its social media channels and e-newsletter to agents that it is “business as normal” and reassuring customers that bookings remain financially protected.
“Customers expect to be financially protected for flights/holidays [and are] asking what happens with bookings where travel is in six to 12 months’ time,” she added.
“The CAA has not provided a date for further communication. A timetable of the decision-making process may help calm the nerves.
“The best advice I can give to agents is to make sure you are keeping your customers in the loop and be pro-active with the communication – even if there are no definitive statements to share – so the customers know you are on top of this important subject. They will know the agent has their best interests at heart.
“Now the topic has been raised publicly, it needs to be at the top of the immediate agenda.
“Failure to address this will cause uncertainty among the industry and caution for those operators selling via the Channel Isles community.”
A spokesperson for the CAA, which operates the Atol financial protection scheme, said: “We understand that there is uncertainty on this matter, and we will issue clarification to agents and operators in the near future.”
Sara Park, marketing manager at Premier Holidays – which sells packages to consumers in the Channel Islands as well as holidays in the destination – said the operator has received “a handful of queries” from agents and it is heeding the advice issued by Abta.
“We have assured our agents that our Atol coverage encompasses all trips (by air) to the Channel Islands and the Isle of Man, ensuring a sense of security and confidence for travellers,” she said.
“Any of our long-haul destinations booked by agents in the Channel Islands and the Isle of Man will not be covered by the Atol regulations, as they are not UK residents.”
An Abta spokesperson said: “We are advising Abta member Atol holders to discuss this directly with the CAA.
“Abta agent members with queries should speak with their suppliers to understand how those suppliers require agents to sell their holidays.”
The spokesperson confirmed that Abta circulated the notice to members on November 30 “after receiving confirmation from the CAA that sales made to customers located in Jersey, Guernsey and the Isle of Man are not covered by the Atol regulations”.
Picture by HYS_NP/Shutterstock.com