Changes to ATOL that take effect today do not go far enough say MPs
29 April 2012
Changes to ATOL that come into effect today (April 30) do not go far enough say MPs on the Commons Transport Committee in new report.
Fundamental reform of ATOL – the consumer protection scheme for holidaymakers – is needed, according to a report published today by the Transport Select Committee. Changes introduced by the Government that come into effect today do not go far enough. Holiday sales by airlines must also be covered and fairer, more efficient and comprehensive arrangements are needed.
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The CAA has provided a
new website to assist understanding of the new ATOL requirements as well as producing a
Guide.
April 30th is the deadline for the new rules to apply.
From February
The cost of applying for a full ATOL licence will be £3,083, according to the Department for Transport. The cost has been revealed in the DfT’s Impact Assessment document on changes to ATOL (Air Travel Organisers’ Licensing), which come into effect on 30 April.
A full ATOL licence will cost £1,890 plus an administration cost of £1,193, making a total of £3,083. A Small Business ATOL (SBA), will cost £1,185 to apply for, plus an administration cost of £596, making a total of £1,711.
Five consortia are expected to get an Approved Body (AB) licence, which will cost £20,000 to apply for, plus an administration fee of £2,385, making a total of £22,385. Consortia members will need to pay £100 to apply for an Approved Body membership licence, plus £298 in administration fees, bringing the total cost to £398. The DfT expects 1,700 AB member applications.
Annual renewal costs have been set at £1,185 for a full ATOL, £780 for an SBA; £10,000 for an AB and £100 for an AB member. Administrative costs of between £300 and £500, depending on the type of ATOL, would also apply each year.
The DFT claims: ‘The extent of any increase in costs is expected to be small so the potential impact on the demand for holidays has not been considered. ‘The gross additional cost to businesses is expected to be £3.90 per holiday, less than 1% of the assumed average holiday cost of £500.’