ATOL Reform
New CAA rules call for big changes to your sales processes.
When is a package not a package?
When customers buy a holiday they're buying a collection of items that they trust to work together. The package doesn't just simplify a holiday product, it implies an additional layer of safety. If you're buying a genuine package, that promise is underwritten by ATOL. Problem is, you can be buying something that looks very like a package holiday, but which isn't one under current ATOL rules.
Defining a package is so tricky that even the CAA can't do it. But they are changing the rules about what will count as a package. In the future, if you book a flight that's sold together with accommodation and/or car hire, you will be ATOL-covered. This will be true even if the elements of the package are booked at different times (within a day). The seller of this “Flight Plus" product has to be registered with ATOL and pay the relevant protection fee for each transaction.
Peace of mind sometimes needs a piece of paper. Travel companies will have to issue an ATOL certificate for each sale they make and the rules are not that simple. For example, did you know that if you sell a flight and accommodation in two separate transactions but within a 24 hour period both transactions need to be covered? Systems will need to identify related transactions in a way that's never been necessary before.
The new regulations will come into force in April and all travel companies must be issuing the new ATOL certificates for every purchase by October. Agencies without ATOL cover will need to apply for their own cover or find an approved body to provide ATOL cover on their behalf. They will also have to ensure that they have written agreements with all their suppliers detailing their commercial relationships. If that's not enough, companies will have to ensure all the wording on their agreements, booking terms and conditions, invoices and receipts complies with the new regulations.
Zolv has been talking to the CAA about the changes and we will be tracking them closely over the coming weeks and months. If you need help getting ready for the new world of Flight Plus, please get in touch.