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THE CIVIL Aviation Authority is set to embark on the biggest shake-up of the ATOL regulations since they were introduced 30 years ago.

The authority has launched a consultation paper asking the trade how and to what extent holidays should be protected against the failure of travel firms. It wants views on whether ATOLs are still relevant in today’s market amid growing concerns over self-packaging and public confusion over financial protection.

An increasing number of people are putting together their own package believing they will be protected if something goes wrong. Director of the consumer protection group Helen Simpson said: “We think the time is right for a thorough reappraisal of how holidays are protected.

“Although ATOLs have worked well, the number of people they are not helping is increasing and that needs to be addressed.”

The CAA hasn’t made any proposals in the consultation because it is keen to hear the whole industry’s opinion, including agents, tour operators, airlines and hotels. It will take the results of the consultation to the Government with the aim of forcing through primary legislation to modernise holiday protection.