The group has urged the government to keep in place what it calls the “highly effective” financial protection offered by Atol regulations.
Atipac’s main concern is a move by regulators to change the country responsible for protecting consumers from the place of sale to the place of establishment.
John Cox, chair of Atipac, said: “We are pleased to see the long-awaited PTD is progressing, but are very concerned about how some its measures could impact UK consumers – particularly making where a business is located determine which state is responsible for protecting holidaymakers.
“UK consumers currently receive a very effective level of protection through the existing Atol scheme and however the Government decides to implement the new PTD, that level of protection must not be undermined.”