Association reiterates ATOL concerns

The Association of ATOL Companies (AAC) has reiterated its concerns that UK travellers might not get protection from the ATOL scheme in its submission on theEU Package Travel Directive (PTD) reform.

The association has submitted its views to the Department of Business, Innovation and Skills (BIS) showing concern that the current EU proposals allowing tour operator control on placing where damages should come from as a ‘total nightmare’, as some overseas companies trading in the UK could opt to operate under rules for their home country instead.

The lowcostholidaygroup moved its offices to Majorca earlier this year so that it now operates under Spanish package rules, with the Civil Aviation Authority (CAA) warning bookings with the company could now not be covered by ATOL.

“We have worked hard to ensure better consumer protection. Our members issue ATOL certificates in all appropriate cases, a simple and clear explanation of what is, and is not, protected. The UK ATOL system provides protection in cases where EU law is far from clear and consumers may find themselves unprotected when buying similar products from non ATOL holding businesses, either based here or abroad,” said Lindsay Ingram, chair of the AAC.

The association’s legal adviser Alan Bowen added: “Major changes to the ATOL scheme in 2012 extended financial protection to customers who chose to buy flights and accommodation or car hire as separate items (Flight Plus) ‘No other country extends protection beyond traditional package holidays as defined more than 20 years ago. The sheer issue of dealing with language problems if protection is based overseas may be insurmountable and cause greater stress in the event of a business failure. We strongly urge customers to check the protection that may exist before booking.”