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Trailfinders urges rapid Atol reform and variable APC payments

Trailfinders is bucking the demands of most of the sector by urging a rapid Atol reform process and variable Atol Protection Contribution (APC) payments by April next year.

In its response to the CAA’s Atol Reform proposals, Trailfinders even criticises the two-week extension of the consultation deadline in August suggesting it “delayed further” the process.

Abta, the Advantage Travel Partnership and other groups have called for a delay to a lengthy transition process. But Trailfinders argues: “Transition periods invite a lack of action and urgency.”

The company supports full segregation of customer money, describing its use “for any other purposes than intended” as “embezzlement” and suggests partial segregation, one of the CAA proposals, “condones embezzlement”.

However, it acknowledges “partial segregation with payments to suppliers will have an important role in transition”.


More:Abta warns of dangers of rush to Atol reform

‘Delay Atol reform for two years,’ Advantage urges CAA


Trailfinders proposes all pipeline funds held by agents be protected by trust arrangements, calls for Atol Certificates to show up-to-date liability for payments, and urges tiered APC fees be introduced “no later than April 2022”.

It also calls for zero APCs “as soon as travel providers are compliant with the ultimate protection model”, noting Trailfinders “pays APC fees under duress”.

A consultation on Atol reform was launched in April 2021, and the Civil Aviation Authority is currently in the process of considering more than 300 responses.

Michael Budge, head of Atol licencing, said: “We are undertaking an impact assessment of these different options to determine their suitability.

“We would like to reaffirm that no decision has yet been made and that the Civil Aviation Authority will be considering all evidence and opinions provided to us.

“Our proposals for changes will be set out in the second consultation document which is due for publication in spring 2022. At that point, Atol holders and other stakeholders will be able to further comment on the proposals, prior to any changes being made or transition period starting.”

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