The CAA on Wednesday (25 May) published the results of an industry consultation into proposed reforms to the Atol scheme, dating to April 2021. 

It concluded: “There was a general consensus that a variable APC (Atol Protection Contribution) would likely yield a fairer system – i.e. that less risky businesses would not be subsidising riskier ones.”

The CAA has ruled out restrictions on when customers can pay their balance, which received “almost no support” from respondents.

The report also said the majority of Atol holders and the travel industry “do not believe that the CAA should put in place mandatory segregation of customer monies”.

“One of the main concerns was around the significant cost of pre-departure payments (especially for more expensive trips), that should not be borne by the tour operator for the duration of the booking," said the CAA.

“There were also concerns around pre-payments, especially those to major airlines who, respondents stated, are generally not responsive in the cases where refunds are required.” 

The CAA received 305 responses from Atol holders, travel agents and trade bodies, including Abta and Aito, with more than 200 of these being tour operators.