ABTA – The Travel Association is working with the several public bodies to offer financial protection to travellers who do not book package deals.
ABTA – The Travel Association is liaising with the Civil Aviation Authority (CAA) and the Department for Transport in order to offer travellers who book their flights and accommodation separately the same level of financial protection as those opting for package holidays.
According to a report in the Daily Telegraph, the new scheme may see travel agents taking responsibility for protecting consumers’ money.
Speaking to the publication, a spokeswoman for ABTA, said: “We have been lobbying for this for some time because of the gap in financial protection for consumers.”
The talks have been prompted by the high-profile collapse of travel operator XL Leisure Group, which saw approximately 10,000 customers who had only booked flights with the company lose their money.
Holidaymakers who had booked a package holiday were covered by the Air Travel Organisers’ Licensing (Atol) scheme.
The government is due to release its consultation regarding reforms to Atol by the end of the year.
The CAA is responsible for the program, which protects consumers financially should the airline they are travelling with go out of business.
All UK-based holiday companies are required to hold an Atol license and the CAA carries out regular checks on all members of the scheme.
Written by Ruth Norris
