A major EU-based operator is offering flight-inclusive ski packages for sale in the UK without holding an Atol, in breach of UK regulations.
Sunweb, based in the Netherlands, has a UK-registered retail arm that is a member of Abta through which it offers financial protection for non-flight packages. However, it offers flight-inclusive packages through its Sunweb.co.uk site protected through Dutch insurer SGR rather than the Atol scheme.
The Sunweb UK site offers “a range of flight packages” for sale, telling consumers: “Your flight-inclusive holiday is financially protected by SGR.”
Prior to Brexit, EU-based operators could sell in the UK without an Atol owing to mutual recognition of EU protection regimes. That changed from the end of the post-Brexit transition on December 31, 2020, when the Package Travel Regulations were amended. Since January 2021, EU-based companies selling flight‑inclusive packages in the UK have required an Atol.
Travel Weekly understands the issue was brought to the CAA’s attention more than a year ago. The CAA declined to comment on that, but a spokesperson said: “Sunweb is actively engaging with us about becoming an Atol-licensed operator. We expect its Atol application to be confirmed in the coming weeks.”
A Sunweb UK spokesperson confirmed: “All flight packages are currently covered by the SGR scheme. However, Sunweb is well‑progressed in the application for an Atol. We’ve received licence terms from the CAA. We expect to be granted an Atol in the very near future.”
An industry source said: “The CAA wouldn’t take enforcement action if a company is actively engaged with it.” However, UK operators are entitled to ask questions of the regulator.
The source noted: “The application has taken far longer than usual.” Abta, which raised the issue with the CAA last year, declined to comment.
A second industry source said: “This looks a bit odd. The Dutch [financial protection] scheme may cover Sunweb’s turnover in the UK, but it has to be protected under the UK scheme.”
As a new Atol holder, Sunweb would be expected to provide a bond or use trust arrangements for customer money in addition to paying the £2.50 Atol Protection Contribution on bookings.
Sunweb carries about one million customers a year across Europe. It announced the acquisition of Danish agency Atlantis Rejser on Tuesday, its second acquisition in as many months.