ATOL change takes effect
Since 1 October, holiday protection in the UK has been enhanced, following the introduction of changes to Air Travel Organisers’ Licensing (ATOL) rules. A new ATOL Certificate has been introduced, which is a standard document issued by all providers selling an ATOL-protected holiday. It makes clear to travellers how their trip is protected and by whom. As all travel businesses are now issuing the same document, it is hoped that consumers will start to recognise it as a form of protection that will give them a better understanding about what would happen if their airline or accommodation provider were to become insolvent after a holiday was booked. Furthermore, in the event of an ATOL provider failing, it will speed up the claims process for consumers.
Since 1 October, holiday protection in the UK has been enhanced, following the introduction of changes to Air Travel Organisers’ Licensing (ATOL) rules. A new ATOL Certificate has been introduced, which is a standard document issued by all providers selling an ATOL-protected holiday. It makes clear to travellers how their trip is protected and by whom. As all travel businesses are now issuing the same document, it is hoped that consumers will start to recognise it as a form of protection that will give them a better understanding about what would happen if their airline or accommodation provider were to become insolvent after a holiday was booked. Furthermore, in the event of an ATOL provider failing, it will speed up the claims process for consumers.
There are three different formats of the ATOL Certificate depending on the type of product sold: Flight-inclusive Package, Flight Only, and Flight-Plus – which is the new licensable sale introduced by the ATOL regulations on 30 April 2012. Under the new rules, the ATOL Certificate must be supplied immediately to the consumer upon the first payment being taken towards any ATOL protected flight or holiday. If a travel business cannot supply an ATOL Certificate immediately, it must not take payment until it can. If the sale is direct, the certificate must be provided by the principal ATOL holder’s booking system. If the sale is through an agent, the certificate can be supplied using the principal ATOL holder’s booking system – so long as the agent doesn’t accept payment until the ATOL holder’s system is ready to produce the certificate – or by the agent using its own systems. Although there are three different formats of the certificate, they each contain the same key information – including a list of who is protected by the certificate, which should name all the passengers going on the trip. There should also be information about the product sold, the departure and destination airports, dates of travel and number of nights. Other details include the name of the principal ATOL holder, the name of the ATOL Certificate issuer and a unique reference number. The UK’s Civil Aviation Authority says of the changes: “The ATOL Certificate is a new document and replaces previous ATOL documentation requirements. However, consumers buying packages must also receive a confirmation from the principal ATOL holder (package organiser) giving more details about their booking. ATOL holders selling Flight-Plus may also wish to provide the consumer with other contractual documentation.”