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ABTA Scotland Regional Meeting

ABTA Scotland Regional Meeting. ABTA Regional Meetings Programme 12 th September 2012 Victoria Bacon Head of Communications Andrew Sylvester Financial Business Analyst. Agenda. Introductions ATOL reform update: ATOL Certificates ABTA Joint Administration Scheme ATT Payment Policy

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ABTA Scotland Regional Meeting

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  1. ABTA ScotlandRegional Meeting ABTA Regional Meetings Programme12th September 2012 Victoria Bacon Head of Communications Andrew Sylvester Financial Business Analyst

  2. Agenda • Introductions • ATOL reform update: • ATOL Certificates • ABTA Joint Administration Scheme • ATT Payment Policy • How can ABTA help? • Questions and Answers

  3. Department for Transport’s ATOL ReformUpdate: ATOL Certificates

  4. How did we get here? • ATOL reform began in 2009 • In February 2011 the Department for Transport announced it was to introduce Flight Plus and reform the ATOL Scheme • On 1 May 2012 the new ATOL Regulations came into force – a short ‘grace period’ followed • July 2012 the Civil Aviation Act passed its scrutiny in the House of Commons and moved to the House of Lords • On 1 October 2012 the requirement to provide ATOL Certificates comes into force

  5. ATOL Certificates • From 1 October, ATOL Certificates must be supplied when a customer pays towards any flight or holiday that is ATOL protected. • They are to be used for all ATOL sales: package holidays, Flight-Plus and flight only. • There are 3 different versions, one for each of those types of sale:

  6. ATOL Certificate – Design • Must be in this layout, with ATOL logo in same position and style • Must be either yellow or black and white (NOT any other colour) • Don’t print or email on letterhead stationery

  7. When to issue an ATOL Certificate • Must be issued immediately: • by the person dealing directly with the customer • at the time that payment is accepted from the customer • If you’re a travel agent, check whether the tour operator will provide you with the certificate OR whether you are expected to produce this yourself • NB if you’re an agent selling Flight-Plus you’ll produce your own Certificate. Check you know how to complete it. • If you’re a tour operator, ensure your agents are able to provide the customer with a certificate at point of sale

  8. How will an ATOL Certificate be issued? • Operators can email it to agents, or allow them access to their systems, or provide a link to view the Certificate on a web page • It can’t be posted to agents as the agent must hand it to the customer as soon as payment is taken • How you supply it depends on the type of sale: • Face-to-face sale: must be handed to the customer. • Phone or internet booking: must be immediately sent electronically to the customer. Can be uploaded on to a web page and the customer provided with a link • For phone bookings you’re permitted to immediately post it to the customer

  9. Changes to bookings • If there are subsequent changes to the booking, you should provide the customer with a new Certificate • e.g. no. of passengers; names of passengers; • You can provide a new Certificate in person, electronically or by post • A new Certificate is NOT required if: • the changes are made at the last minute (i.e. within 72 hours of departure) OR • The information on the Certificate is unaffected by the changes made e.g. change of accommodation on a package holiday

  10. Other documentation • Certificates don’t replace receipts and invoices • Issue receipts and pass on invoices as normal • On package holiday sales, the tour operator must issue a separate ‘Confirmation’ stating holiday details, price and the reference number on the relevant ATOL certificate • Customer should receive this within 3 days • ATOL Certificates must not be supplied for sales which do not include a flight or those which are exempt from the ATOL Regulations • E.g. cruises (with no flight involved), accommodation only, airline ticket agent or IATA sales, flight only or Flight-Plus to business customers

  11. Four things to remember 1 2 3 4 From 1 October you must issue an ATOL Certificate for all air Packages, Flight-Plus &Flight Only sales You must use the specific design – you cannot make up your own design The ATOL Certificate must be issued immediately Prepare now – check with your suppliers or agents to check they’re ready.

  12. Air Travel Trust Payment Policy • Sets out when ATOL claims will be paid • ATOL Certificates must be produced • Written agency agreements must be produced • ATT Contributions to Flight-Plus Arrangers • Written agency agreement • Loss = cost of original flight, not replacement • £25 deducted per passenger (not packages) • Cap of 2% of ATOL turnover or • £50,000 where ATOL turnover less than £2.5m • £2.5m where ATOL turnover more than £125m (not packages)

  13. How can ABTA help?

  14. What is ABTA doing to help? There are three things ABTA is doing to help Members with ATOL reform implementation: 1 2 3 ABTA/ATOL Joint Administration Scheme ABTA Guidance and Model Documents Lobbying for Holiday Sold by Airlines to be included in the ATOL scheme

  15. 1. ABTA / ATOL Joint Administration Scheme We have created the ABTA/ATOL Joint Administration Scheme to help Members who are applying for an ATOL for the first time or renewing their ATOL. It could offer substantial improvements for Members both in terms of cost and simplicity: • Apply for or renew your ATOL through ABTA • You don’t need to deal with the CAA • ATOL Turnover up to £1.5m • You could pay lower fees and have lower bonding costs • Bespoke bonding requirements

  16. 2. ABTA Guidance and Model Documents On ABTA.com we have details of who can help you and: Model Agency Agreements Model Booking Conditions Model Agency Terms of Business Model wording for brochures and websites

  17. 3. Lobbying for Airline Holiday Sales to be included • ABTA is lobbying in Westminster for holidays sold by airlines to be included in a scheme of protection. • The Civil Aviation Bill that would give the Secretary of State powers to bring airline holidays sales into ATOL is currently in the House of Lords having passed its first House of Commons stages. • The Bill is expected to become law in Easter 2013. • The Government will then consult on holidays sold by airlines entering a scheme of protection.

  18. Keeping up to date • Keep watch on www.abta.com/atolreform • If you have questions: • look at the FAQs on our website • call Members’ Information on 0845 177 2282 • or email membersinfo@abta.co.uk • CAA Guidance on Completion and Supply of ATOL Certificate www.caa.co.uk • The Air Travel Trust Payment Policy – 6 August 2012 www.caa.co.uk

  19. Questions

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