As the effects of the credit crunch are felt globally and increasing numbers of vulnerable businesses falling by the way side, it appears that against the odds, the travel industry looks set to weather the storm and come out the other side intact if not unscathed.
However it is not going to be all plain sailing, the CAA is taking a decidedly hard line in their bid to ensure there won’t be a repeat of last year’s XL Leisure debacle that left over 85,000 tourists stranded and cost the CAA millions of pounds to repatriate the stranded travellers. Therefore any travel company found to be underperforming will find them self under the Civil Aviations Authority’s microscope in a bid to either weed out or strengthen the weaker players in the industry before the busy summer season.
In order for tour operators to be awarded an ATOL licence they must measure up to the stringent standards specified by the CAA. It’s vital for agents to retain their ATOL (Air Travel Organisers’ Licencing Scheme) affiliation as it is a major selling point that provides peace of mind for almost thirty-million Britons who take a package holiday each year, ensuring that they will either receive a refund or be brought home should their travel company run into trouble.
The credit crunch has brought the matter of reliability to the forefront and it has become apparent that the CAA would rather see the less able companies cease trading now, rather than face another huge bill for bringing home British holiday makers stranded abroad. They are now considering asking some tour operators to provide a larger bond this year and if they are unable to meet the criteria, they will be forced to stop selling flights.
A spokesman for the CAA stated that; “Our responsibility is to passengers and to ensure companies meet the criteria for the ATOL licence. If they do not, that is a matter for them”.
The upshot is that the CAA is playing hard ball and is determined to keep a reign on spending. The overall cost of the XL operation not only grossly exceeded XL’s £42 million bond but it could possibly exceed the Air Travel Trust Fund’s £60 million pounds over draft, which is run by the industry as a passenger compensation scheme.
However it is not going to be all plain sailing, the CAA is taking a decidedly hard line in their bid to ensure there won’t be a repeat of last year’s XL Leisure debacle that left over 85,000 tourists stranded and cost the CAA millions of pounds to repatriate the stranded travellers. Therefore any travel company found to be underperforming will find them self under the Civil Aviations Authority’s microscope in a bid to either weed out or strengthen the weaker players in the industry before the busy summer season.
In order for tour operators to be awarded an ATOL licence they must measure up to the stringent standards specified by the CAA. It’s vital for agents to retain their ATOL (Air Travel Organisers’ Licencing Scheme) affiliation as it is a major selling point that provides peace of mind for almost thirty-million Britons who take a package holiday each year, ensuring that they will either receive a refund or be brought home should their travel company run into trouble.
The credit crunch has brought the matter of reliability to the forefront and it has become apparent that the CAA would rather see the less able companies cease trading now, rather than face another huge bill for bringing home British holiday makers stranded abroad. They are now considering asking some tour operators to provide a larger bond this year and if they are unable to meet the criteria, they will be forced to stop selling flights.
A spokesman for the CAA stated that; “Our responsibility is to passengers and to ensure companies meet the criteria for the ATOL licence. If they do not, that is a matter for them”.
The upshot is that the CAA is playing hard ball and is determined to keep a reign on spending. The overall cost of the XL operation not only grossly exceeded XL’s £42 million bond but it could possibly exceed the Air Travel Trust Fund’s £60 million pounds over draft, which is run by the industry as a passenger compensation scheme.
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