Travel businesses “are crying out for clarity” on the CAA’s Atol reform, according to Abta director of legal affairs Simon Bunce.
Speaking at a travel law break-out session at Abta’s Travel Convention in Greece last week, Bunce suggested: “The CAA got bulldozed into changing Atol because of the trouble [over refunds] during Covid.
“But the CAA already has flexibility to ensure Atol holders have the level of security it requires.”
He argued: “People are crying out for clarity on what is going to happen.”
The CAA launched a consultation on Atol Reform in April 2021 and planned to have the initial phase of a revised Atol regime in place by now. It published a ‘Request for Further Information’ on the proposed reforms in January 2023. Together, these two documents drew close to 600 responses.
A joint CAA and Department for Transport (DfT) statement confirmed a delay to the reform in January this year, but asserted there “remains a strong case” for reform, and the then aviation minister promised an update later this year.
However, Bunce said: “I don’t think we’ll see anything [on Atol reform] next year. We need clarity on what is happening.”
Rich Simpson, travel governance and compliance manager at Mid-Counties Co-operative, agreed saying: “We absolutely need certainty because it’s difficult to plan. Our business model and those of others would potentially have to change. Atol reform has gone on so long now, it really does need to take place.”
Abta chief executive Mark Tanzer noted there are two strands to the proposed reforms – segregation of customer money and a switch to a variable rate of Atol Protection Contribution (APC) – when he addressed the Convention on the opening day.
He said: “We need to know if there is going to be change.”
But Tanzer argued: “The underlying problem is we never understood what Atol reform is trying to solve. That is why it has run into the sand.”
Speaking at a Travel Weekly Business Breakfast at the Convention, Abta chair and Blue Bay Travel chief executive Alistair Rowland said: “It’s difficult to plan without knowing what is happening on Atol reform and bonding. It needs sorting out.
“There has to be an end date. They [the CAA and DfT] can’t say there will be a statement and then there is no statement. Let’s have clarity.”