Why are the travelling public still being kept in the dark?
The PTR’s and the compensation bestowed by EU261 on the whole are both sound, but these only protect a minority of travellers. The gaps in protection for the travelling public are numerous and Whitehall shows no appetite to address this despite reviews and consultations galore (dating back at least 40 years).
There was meant to be a UK review of the PTR's by the department for Business to improve this legislation we inherited from the EU. This appears to have gone quiet. Not even the linked travel loophole has been closed.
For more than 2 years the CAA have been chewing over a review of ATOL. There is still no clear plan of reform, despite the current financial regulation being at odds with all other major industries. There is not even a requirement for escrow accounting. This current consultation and review will run until at least 2024 and probably longer given their record.
The AIR (Airline Insolvency Review 2018-2019) was meant to address the woeful lack of protection for flight only bookings when an airline failed - to avoid a repeat of the enormous cost to the taxpayer when Thomas Cook and Monarch failed. This made it as far as the Queen’s Speech before disappearing into a dusty drawer.
For packages outside of the scope of ATOL no department is policing this legal protection, as such it becomes optional whether less scrupulous Travel Organisers provide this protection and obey the law.
Meanwhile the confusing lottery of travel protection continues, which few understand, leaving consumers vulnerable to being out of pocket. Just a few examples:
- If your BA Flight from Singapore to London is delayed by 6 hours, due to a lack of cabin crew, you will be entitled to €600 pp compensation. Why is that not true if you are flying Singapore airlines?
- You’ve booked a weekend break to Paris with flights and hotel, this is covered by the PTR’s and protected by ATOL. Why is the same weekend break not protected by ATOL if you travelled by Eurostar rather than plane? Who ensures the PTR protection is in place for the Eurostar package?
- You have bought a flight via an airline website and a non-refundable hotel online. The flight is cancelled last minute due to a NATS failure and you are put on an alternative 2 days later. The hotel won’t refund you for the 2 missed nights. Why is this not protected? Afterall, NATS is joint owned by airlines and the UK government and is highly profitable.
- You pay a Travel Agent £10,000 for a holiday. The CAA allows them to take your money and immediately pay it to themselves as a dividend rather than safeguard it to pay for your holiday. This is the major component in Travel Company failures. This would be illegal for Solicitors, Funeral Directors and even Bookmakers. Why are Travel Organisers still permitted to embezzle Client money if their moral compass allows it?
Addressing these issues continues to be kicked down the road. The travelling public deserve much better.
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