The DfT is seeking views on how to update the Atol regulations to comply with the revamped Package Travel Directive, changes to which come into force on July 1.

In particular, it wants comments on broadening the scope of Atol protection through a new definition of a package and how to implement protection for Linked Travel Arrangements under the Package Travel Regulations. It also wants views on who needs to hold an Atol.

Meanwhile, the CAA is seeking views on changes to the reporting requirements and the information it requires from Atol holders. Both consultations close on March 23.

The CAA said: “These should enable us to react to problems, such as overtrading, sooner, for the overall benefit of consumers and the Atol scheme. We have included our proposals on transitional arrangements to help Atol holders adapt to some of the changes.

“We are also proposing some changes to Atol exemptions and the scope of Atol Flight-Only protection so that we only regulate where we believe consumers face unacceptable risks.”

It added: “Looking further ahead, we are also seeking your views on the DfT’s intention to grant the CAA civil sanction powers to enhance our ability to tackle more routine compliance issues.
“We are also proposing to issue Atol Certificates to consumers from the data the industry provides us.

This will enhance our ability to manage the Atol scheme and enable consumers to check their Atol entitlement independently.”