Trailfinders proposes ‘interim’ measure for Atol scheme

Trailfinders founder Mike Gooley and chief executive Toby Kelly recently met with Reiner Krammer, the CAA’s head of corporate finance and risk, when they proposed an increase in the amount of money accredited bodies receive from the £2.50 Atol Protection Contribution (APC) fee paid by package travel customers.

The six accredited bodies, which allow operator members to trade under their single Atol with all money going into a trust account, currently receive £1.25 per passenger in a “service charge” from the ATT. This is designed to pay the costs of ensuring consumers get the holiday they booked when the member of an accredited body fails.

Currently, there are six accredited bodies within the Atol scheme: Barrhead Travel, Broadway Travel Services, Global Travel Group (now part of The Travel Network Group), Hays Travel, Midcounties Co-operative and Travel Counsellors.

Trailfinders has proposed that a new higher level of service charge of £2.50 could be paid to accredited bodies, with the requirement that all customer money is “safeguarded in trust until all travel is complete”. Under the existing regime, money can only be taken out of trust accounts to pay suppliers before travel.

Kelly said in a letter to Krammer introducing the higher £2.50 service charge to accredited bodies would “encourage a further removal of risk” for the ATT and would act as an interim measure ahead of much-delayed reform of the overall Atol system.

“This solution is neat and pragmatic and can be put in place within weeks,” added Kelly.

But Krammer explained in a letter to Trailfinders’ bosses that the CAA was “not in a position to deal with the proposals”, as changes to the APC scheme can only be made by the transport secretary and parliament.