Agents warned new regulations will create first time Atol holders

Rajeev Shaunak, partner at MHA MacIntyre Hudson, said the “wider definition” of a package under the new PTRs meant agents who might not previously have considered themselves package providers would have “much less leeway” to avoid becoming a package travel organiser.

“The CAA has made statements suggesting some agents were previously putting together what appeared to be package holidays but selling them under the Atol of the supplier of the air seat or, more often, where the agent claimed to be acting as an agent of the consumer,” said Shaunak.

“Both scenarios will require agents to hold their own Atol from July 1. For agents needing an Atol licence for the first time, they must get their applications completed if they haven’t done so already.”

Shaunak added first-time Atol holders would require bonding and an Atol reporting accountant.

Addressing Abta’s Travel Law Seminar last month, Stephen Mason, senior partner at Travlaw, warned new CAA boss Richard Moriarty’s proposed “moratorium” on enforcement of changes to the Atol scheme would, if applicable, only extend to a “tiny bit” of the “package travel scene” governed by the CAA.

Like Shaunak, he advised agents likely to be selling packages or Linked Travel Arrangements after July 1 “get on with” making arrangements for an Atol licence and not become complacent.

Meanwhile, the Department for Transport (DfT) last week set out its plans to modernise the Atol scheme, strengthen consumer protection, and bring it in line with the EU’s Package Travel Directive following two consultation exercises, one in October 2016 and another in February 2018.

The changes were outlined in the DfT’s formal response to its “updating ATOL consumer protection for package travel” consultation, which was held over four weeks in February and March and received 30 responses. The full new regulations are yet to be published.