Air Travel Organisers' Licensing (ATOL) reform: seventeenth report of session 2010-12, report, together with formal minutes, oral and written evidence

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Changes to ATOL that come into effect today (April 30, 2012) do not go far enough say MPs on the Commons Transport Committee in this new report. Fundamental reform of ATOL - the consumer protection scheme for holidaymakers - is needed. The Committee calls on the Government to clarify its objectives for ATOL reform, to ensure that all passengers and holidaymakers are properly informed of the potential consequences of airline insolvency and the options available to them to obtain financial protection. MPs also recommend that: (i) The Civil Aviation Authority should work with the airlines to develop a code of practice covering information for all consumers making overseas holiday or travel bookings. This must be designed to ensure that passengers understand the risks of being stranded abroad as a result of airline insolvency and are aware of the insurance options available; (ii) The Government undertake research into consumers' views on whether, and in what ways, the ATOL scheme should be extended; (iii) The Government must distinguish between issues related to consumer protection and repatriation cover; (iv) Future reforms should be funded by the travel industry and must provide consumers with informed choices on protection options; (v) ATOL Protection Contributions should be linked to the value of the holiday booking, instead of the current flat rate of 2.50 per passenger.

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