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Plan to regulate online bookings

(22 July 2004)

CLICK-THROUGH accommodation bookings made via airlines’ websites will come under the ATOL system as part of radical new plans drawn up by the Civil Aviation Authority.

In its final recommendation to the Government on the future of ATOLs, the CAA surprised the trade by dramatically extending the scope of protection it originally proposed.

The CAA was not expected to stray from its draft advice issued in March, which suggested only return international flights, originating in the UK and paid for in advance, should be brought under the regulations.

Deputy head of consumer protection David Moesli said: “This was a point raised by the travel trade following the draft proposal.

“It is an area where there is clearly some confusion because people click through to an airline-branded accommodation website and think they are booking a package.”

However, accommodation not booked via an airline’s website or booked directly with a hotel chain will not be covered.

The move is one of several changes made to the original proposal. Domestic flights are no longer included in the recommendations because fares are considerably cheaper than international flights and passengers can get themselves home easily.

The CAA has also called for interim measures to be installed because the Government is not expected to legislate until 2006 at the earliest. It wants airlines to promise on a voluntary basis to help repatriate stranded passengers for free if a competitor goes bust, explore whether travel insurance policies can be extended to cover airline failures and arrange for hotel accommodation sold with flights to be sold through an ATOL holder.  

The CAA won’t expand on the proposals until the Government has indicated whether they will be accepted, although it hinted a levy per person would be the preferred option. “We think consumers would easily understand a levy and it would be simpler to administer than other options,” said Moesli.