The new PTRs will be the biggest change to the system since the original set of regulations 25 years ago. And for agents in particular, some of the changes may come as a shock.
The much wider definition of a package means agents who may not previously have considered themselves package providers will have much less leeway avoiding this status.
Agents should ensure their IT systems and terms and conditions meet the regulation guidelines, and take note of the following 10 considerations in the lead up to the deadline:
1. Decide what sort of business to be
Retailers can continue to sell packages sold by other principals but flight-plus sales will almost always now be packages.
2. Learn what constitutes a package
There are six different definitions and the new concept of a Linked Travel Arrangement (LTA) to consider. While LTAs do not require Atol protect, they do require financial protection.
3. Learn the new pre-sale requirements
All customers buying a package or LTA must be told exactly what they are buying and what their rights are, as well as a link to the new regulations. Think about how can you give customers this information - is giving it over the phone or face-to-face practical?
4. Consider your Atol licence position
If you need one, consider how and at what cost you will apply for your Atol licence. For first time licence holders, bonding will be required and you will need to appoint an Atol reporting accountant (ARA). Ask your accountant now if they’re an ARA and seek their advice on your application.
5. Don’t underestimate insurance need
Take advice on the need for public liability insurance and make sure your cover is sufficient.
6. Make sure you have conditions of sale
Consumers are becoming more litigious and you need conditions that protect your interests as well as theirs.
7. LTAs require separate financial protection
If you plan to sell LTAs, you must have financial protection in place - but it cannot be an Atol licence. Some businesses may need to arrange a bond, take out insurance or set up an independent trust account.
8. Check your overseas suppliers’ protection
If you sell products created by overseas suppliers defined as a package, check the overseas company has adequate financial protection in place; if they don’t and cease trading, you will be responsible for refunding the customers’ money.
9. CAA changes could go beyond EU directive
Watch out for some of the CAA’s proposed changes to the Atol scheme, which are expected to go beyond the scope of the EU’s Package Travel Directive - the rosetta stone for the shake-up.
10. Look out for the PTR guidance notes
Get a copy of new guidance notes due to be issued with the new regulations. The government promises they will clarify many unanswered questions that exist at present. Whether they do or not remains to be seen. The guidance notes are expected in the coming weeks.
