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Government Response to ATOL Consultation on PTD Reform

The Department for Transport has today given it’s response to the consultation “Modernising consumer protection in the package travel sector: ATOL changes”, which is available through the following link:   www.gov.uk/government/consultations/atol-reform-modernising-consumer-protection

And here’s a summary of the Government response to update ATOL

In October 2016, the Government invited views on proposals to update the ATOL scheme to respond to innovation in the travel market, and enhancements to the UK and European package travel regulations. This response provides a summary of stakeholder views and outlines how the Government plans to proceed.

Overall, the majority of respondents were supportive of plans to harmonise the ATOL scheme with the new EU Package Travel Directive 2015 (PTD 2015). This will bring greater clarity and protection for consumers and help to level the playing field for businesses selling similar holidays.

Having carefully considered views, the Government will take forward plans to align ATOL with the PTD 2015 as follows:

1. The ATOL scheme will be aligned with the new definition of “package’’ in PTD 2015;
2. The scope of the ATOL scheme and its levy will be changed to focus upon sales by businesses established in the UK.

Respondents also highlighted a preference for the inclusion of flight related Linked Travel Arrangements within the ATOL scheme. My team will work with the Civil Aviation Authority and the Department for Business, Energy and Industrial Strategy to consider the best way to achieve this.

Next Steps

The Government will shortly publish a second consultation seeking views on the over-arching proposals for implementing PTD 2015 as a whole. It will lay out proposals to align the UK’s Package Travel Regulations (PTR 1992) with the definitions in the PTD 2015. The responses to the ATOL reform consultation have and will continue to inform Government’s approach to reforming the PTR 1992 regulations and the ATOL regulations.

It is also important to get the longer term regulatory framework right so that the market works better for business and consumers, while minimising the financial risk for the Government and taxpayer. We are grateful for the views provided in the consultation, which will help to inform the options as we work on a programme of longer term reform.
Summary of the Government response to update ATOL

In October 2016, the Government invited views on proposals to update the ATOL scheme to respond to innovation in the travel market, and enhancements to the UK and European package travel regulations. This response provides a summary of stakeholder views and outlines how the Government plans to proceed.

Overall, the majority of respondents were supportive of plans to harmonise the ATOL scheme with the new EU Package Travel Directive 2015 (PTD 2015). This will bring greater clarity and protection for consumers and help to level the playing field for businesses selling similar holidays.

Having carefully considered views, the Government will take forward plans to align ATOL with the PTD 2015 as follows:

1. The ATOL scheme will be aligned with the new definition of “package’’ in PTD 2015;
2. The scope of the ATOL scheme and its levy will be changed to focus upon sales by businesses established in the UK.

Respondents also highlighted a preference for the inclusion of flight related Linked Travel Arrangements within the ATOL scheme. My team will work with the Civil Aviation Authority and the Department for Business, Energy and Industrial Strategy to consider the best way to achieve this.

Next Steps

The Government will shortly publish a second consultation seeking views on the over-arching proposals for implementing PTD 2015 as a whole. It will lay out proposals to align the UK’s Package Travel Regulations (PTR 1992) with the definitions in the PTD 2015. The responses to the ATOL reform consultation have and will continue to inform Government’s approach to reforming the PTR 1992 regulations and the ATOL regulations.

It is also important to get the longer term regulatory framework right so that the market works better for business and consumers, while minimising the financial risk for the Government and taxpayer. We are grateful for the views provided in the consultation, which will help to inform the options as we work on a programme of longer term reform.
mary of the Government response to update ATOL

In October 2016, the Government invited views on proposals to update the ATOL scheme to respond to innovation in the travel market, and enhancements to the UK and European package travel regulations. This response provides a summary of stakeholder views and outlines how the Government plans to proceed.

Overall, the majority of respondents were supportive of plans to harmonise the ATOL scheme with the new EU Package Travel Directive 2015 (PTD 2015). This will bring greater clarity and protection for consumers and help to level the playing field for businesses selling similar holidays.

Having carefully considered views, the Government will take forward plans to align ATOL with the PTD 2015 as follows:

1. The ATOL scheme will be aligned with the new definition of “package’’ in PTD 2015;
2. The scope of the ATOL scheme and its levy will be changed to focus upon sales by businesses established in the UK.

Respondents also highlighted a preference for the inclusion of flight related Linked Travel Arrangements within the ATOL scheme. My team will work with the Civil Aviation Authority and the Department for Business, Energy and Industrial Strategy to consider the best way to achieve this.

Next Steps

The Government will shortly publish a second consultation seeking views on the over-arching proposals for implementing PTD 2015 as a whole. It will lay out proposals to align the UK’s Package Travel Regulations (PTR 1992) with the definitions in the PTD 2015. The responses to the ATOL reform consultation have and will continue to inform Government’s approach to reforming the PTR 1992 regulations and the ATOL regulations.

It is also important to get the longer term regulatory framework right so that the market works better for business and consumers, while minimising the financial risk for the Government and taxpayer. We are grateful for the views provided in the consultation, which will help to inform the options as we work on a programme of longer term reform.