PACKAGE TRAVEL REGULATIONS

Proposal to the Better Regulation Executive

ABTA is concerned that the present mechanisms for the provision of financial protection required under the Package Travel Regulations (PTRs) and the ATOL Regulations do not provide a simple and effective mechanism which is understood by consumers or the trade.

ABTA’s Position

ABTA has written to the Better Regulation Executive (BRE) proposing that financial protection required under the PTRs be administered by one government department and that trust accounts should be removed from the list of allowable mechanisms as they do not fully implement the requirement of the European Directive. A series of meetings has taken place between BRE, the Department for Transport (DfT), the Department for Business, Enterprise & Regulatory Reform (BERR), the Civil Aviation Authority (CAA), ABTA, the Federation of Tour Operators (FTO) and the Association of Independent Tour Operators (AITO).

DfT and the CAA appear to accept that there is a case for companies that already hold an ATOL to bring their non-licensable business within the same bonding regime and we are working with the CAA to determine how this might be achieved.

The Travel Trust Association (TTA) has written to BERR arguing that the requirements for trust accounts in the PTRs could be strengthened. ABTA has responded pointing out the basic deficiencies in providing consumer protection by way of trust accounts.

Last updated: 8 April 2008