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Consumer Protection
A confused legal situation exists as to what exactly a 'packaged holiday' is, and when an ATOL (Air Travel Organiser's Licence), offering consumer protection in the case of tour operator or agency failure, applies.
It is evident that the current ATOL system is far from ideal for dealing with the complexities of modern travel distribution, and clarifying exactly who is a travel principal, or an agent etc. Shortcomings of the system have been identified as a result of the business failures of various travel entities in recent times.
However, the proposals made in the recent consultation 'Proposals to Update the Regulatory Framework for Aviation' are just as unclear.
In brief, they are complex and inconsistent, and customers will end up just as confused.
For those reasons, BAR UK contends that, unless otherwise clearly packaged and stated as being ATOL-protected, air travel and associated purchases should be clearly sold as remaining outside of the ATOL system.
The results of the consultation are now awaited with interest.
