Two senior travel lawyers this week told TTG there are at least two scenarios which could foist Atol responsibility on agents, with the new regulations due to be enforced on July 1.
At present, agents work around an established definition of a “package” set out in the 1992 PTRs, albeit one extended in 2012 to include flight-plus bookings.
Under the new regulations though, the number of definitions of a package, or ways of creating one, has increased to six.
MORE: 10 things every agent should think about before the new Package Travel Regulations land
“There are two obvious new definitions which could lead to agents selling packages, for which they must have an Atol, that would not be the case at present,” said Alan Bowen, legal advisor to the Association of Atol Companies.
“The first is where the customer chooses two or more travel services and agrees to book them at the same time. At present, there needs to be an inclusive price, but this is no longer the case.
“So the agent issuing an invoice showing separate prices for each element will be selling a package whether they know it or not. This could be face-to-face, on the phone or online.
“The second is where the travel agent puts together a selection of travel services for the same trip but quotes a single inclusive price. That will also be a package, whether intended or not.”
The new PTRs also introduce Linked Travel Arrangements (LTAs) which, although not requiring Atol protection, do require a form of financial protection.
Bowen added while the definition of an LTA was still “far from clear”, LTAs would default to packages - requiring Atol protection - if agents failed to inform customers they were buying an LTA.
