Travel agents warned over ATOL
Posted on December 15th, 2008 in Featured - >> Add a comment below
Travel advice: If your booking a holiday package, ask who its with and is it bonded. Unscrupulous agents like Travel Republic are currently being sued by the CAA for selling flights without an atol licence.
In other words they were dynamic packaging the holiday, by booking the accommodation and flights separately. However they did not have an atol licence a fact, they were well aware off.
Changes in consumer protection rules, together with legal guidance issued in early 2008 was meant to make it clear when agents are packaging and when they are not.
For example: A deal to Spain accommodation is £150 for the week, plus flights of £99 each. So for 2 adults the cost is £150 plus £99 plus £99 = £348 divided by 2 = £174 per person
If travel agents create and sell package holidays on their own behalf, then they are the principal and not just an agent so become liable for any non-performance of that package. Which includes the flights as in the XL collapse.
The CAA (Civil aviation authority) have made it very clear they will Sue agents for the cost of the refunds they have issued..
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