Organisations & Operators,

The UK Civil Aviation Authority (CAA) reports that over 300 respondents have contributed to the ATOL reform consultation.
The consultation received high levels of “constructive engagement” from a wide range of industry stakeholders, consumer organisations, financial institutions and travel trade bodies.
Engagement from stakeholders will allow the CAA to better understand any concerns when shaping changes to the ATOL scheme.
The CAA said it will take full account of the need to allow industry to adjust to any new arrangements that will be implemented following the overall consultation process.ADVERTISEMENTThe ATOL team has worked closely with stakeholders over the past few months to discuss the consultation and encourage engagement.
The consultation primarily looked at how ATOL can protect consumers, with a focus on how ATOL holders fund their operations and how the use of customers’ monies should be considered within the regulatory scheme.
Matt Buffey, head of ATOL regulation and governance at the CAA, said: “We would like to thank everybody who has engaged with the consultation since it opened in April.
“While the ATOL scheme exists to protect consumers, we do appreciate the travel industry has faced a period of significant financial uncertainty and it has been highly valuable to listen to their views and take on board any concerns.”
The CAA will now consider these responses and a summary will be published in the autumn, ahead of launching a second consultation making specific proposals in the spring.

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A lack of trust in some holiday companies is the biggest barrier to rebooking with them after travel disruption last year, according to research from Which?.
Millions of people have had a package holiday cancelled since the beginning of the coronavirus pandemic, with billions of pounds having been illegally withheld in refunds for cancelled holidays over this time.
Most companies have since worked through their backlog of refunds, but trust in the industry and some holiday companies has still suffered.
Earlier this year, Which? surveyed more than 4,000 people who had a package holiday that was unable to go ahead between March last year and February 2021 to establish whether they would book with the same company again in the future and why.
Overall, seven in ten respondents in the survey told Which? they were likely to book with the same company again in the future, but huge differences were evident between companies that had tried to treat customers well during the pandemic, and those that didn’t.
More than eight in ten customers of Audley Travel, Hays Travel, Jet2 and Saga who had a package holiday they were unable to go on said they would be likely to book with the company again.
But at the other end of the spectrum, only half of Ryanair and Teletext Holidays customers surveyed said they were likely to book a package holiday with the same company again.
While Which? has previously reported on the struggle Ryanair customers have had to get refunds for flights, this is the first time it has reported complaints from customers who have booked a flight and a hotel together from the carrier.
Ryanair denies that these are package holidays, but Which? believes it is currently selling packages under the Package Travel and Linked Travel Regulations 2018. ADVERTISEMENTUnder the regulations, customers who have booked a package holiday have more rights than those who just booked a flight.
In a balanced response, Ryanair called respondents to the Which? survey “deluded”.
A statement added: “This is yet more ‘fake news’ from Which?.
“Ryanair does not market or sell package holidays and if misguided or mythical Which? survey participants claim that they will not book non-existent packages with us then this devastating news will not cost us a penny since we don’t sell any package holidays to Which?’s mythical or deluded survey participants.”
Ryanair is also at war with Kiwi.com today
Overall, half of those surveyed who said they would not book with the same provider in the future said this was because they no longer trusted the company.
Almost a quarter of those who said they were unlikely to book a holiday with the same company in the future said it was because they were not satisfied with what they received in place of the holiday that did not go ahead.
Many package holiday customers did not receive the option of a refund that they were legally entitled to when their holidays were cancelled last year, and were instead only offered the option of rebooking for a later date, or accepting a voucher or a Refund Credit Note.
Others only received partial refunds, as package holiday providers struggled to recoup money for flights from airlines.
Rory Boland, editor of Which? Travel, said: “With international travel still fraught with potential risks that could leave holidaymakers unable to travel as planned, trusting that a company will refund you if things go wrong will be vital to encouraging customers to book in the near future.
“A considerable number of companies do not seem to have learned lessons from last summer’s disruption though, and continue to offer holidaymakers limited financial protection if their holiday is disrupted by changing travel restrictions or being told to self-isolate.
“It’s important that travellers do their research before booking a holiday while coronavirus remains a risk, to check whether their holiday provider will leave them out of pocket if they cannot travel when the time comes.”
Only half of those who had package holidays that did not go ahead with Ryanair (50 per cent), Teletext (51 per cent) and Opodo (53 per cent) said they’d be likely to book with the companies again, while only six in ten Southall Travel (58 per cent), Love Holidays (60 per cent) and Expedia (62 per cent) customers whose holiday did not go ahead said they would book with the same company again in the future.
Almost two thirds (63 per cent) of Ryanair’s package holiday customers who said they wouldn’t book with the company again said that it was because they no longer trust the company, while more than three quarters of Love Holidays’ customers (77 per cent) said the same.
Many of the complaints about these two companies focused on problems with securing refunds, with customers complaining of long waits, partial refunds, and a lack of sympathy or understanding from the companies when trying to get their money back.

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Tui Group has reported a loss of €670 million for the third quarter of the year.
However, the company has now resumed business activities in all European markets, with cashflow positive for the period.
Tui chief executive, Fritz Joussen, explained: “Our business model and the strong Tui brand remain a successful model and are the guarantee for the successful restart.
“Customer demand and booking momentum remain high as soon as state travel restrictions are withdrawn.
“Where the state gives back normal entrepreneurial freedom, we are very successful – where states intervene and restrict entrepreneurial freedom, these interventions impact bookings.”ADVERTISEMENTHe added: “With one and a half million additional bookings since May and a total of more than four million bookings for the summer business, the figures are encouraging.
“Especially in Germany and in the continental European markets, the current booking figures show a high pent-up demand.”
Joussen added he expected the bumper summer figures to become clearer in the fourth quarter results.
The tourism chief also called for the further loosening of travel restrictions.
“In Europe, vaccination offers are available to everyone who wants to be vaccinated, severe disease progressions do not increase noticeably, and the health systems are not overburdened anywhere in Europe,” he said.
“This is a great success of the vaccination campaigns.
“Vaccination protects – vaccinated people are protected and are no longer a significant risk to others.
“Those who are not or hardly at risk should now have their liberties fully restored.
“This is especially true for children and young people, for whom vaccinations are not compulsory.
“Whether one gets vaccinated or not is and remains a personal decision.
“However, a few should not be allowed to permanently set the pace and restrict the everyday life of the majority.”

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The World Travel & Tourism Council (WTTC) has argued the government should bear the cost of “hugely expensive” and unnecessary PCR tests for fully jabbed citizens.
The body claims the tests are deterring Britons from travelling.
Over the weekend, the UK health secretary, Sajid Javid, requested the Competition & Markets Authority (CMA) step in to investigate ‘excessive’ pricing and ‘exploitative practices’ among PCR Covid test firms.
This follows widespread reports of vast differences paid by travellers for PCR tests by different companies.
Currently, the cost of PCR tests varies enormously between providers, with the average costing around £75. ADVERTISEMENTHowever, some firms are offering express PCR test results within 90 minutes at a cost of up to £400.
This makes UK PCR tests among the costliest in Europe – partly due to the 20 per cent VAT charge applied on top.
Now WTTC, which represents the global private tourism sector, says it is time the government stepped up to pay for people’s PCR tests in full, if they are fully jabbed.
This would remove the huge financial burden, which is depressing demand for travel, effectively halting the revival of international travel.
Genomic sequencing data from PCR tests is harvested by the government to rapidly identify variants of concern, understand transmission and slow the spread, however WTTC challenges why consumers should have to pay for this.
Virginia Messina, WTTC acting chief executive, said: “For many people –especially families and small businesses on a budget – the crippling added cost of the unnecessary PCR tests makes the difference between being able to travel or not.
“It’s clear that many British adults simply can’t afford to travel overseas at all if they have to pay the excessive cost of PCR tests.
“More affordable antigen tests, with PCR tests for those who do test positive, will help keep travellers safe and make taking a trip overseas within the budget of most people.
“But if the government wants extra information for genomic sequencing – they should pay for it.
“If they don’t pay, then consumers will vote with their feet and avoid international travel altogether, further damaging the already struggling UK tourism sector.
“At the very least, we support the investigation by the CMA to look into the excessive pricing of PCR tests which is deterring the revival of international travel.”

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Ailsa Pollard has been appointed as chief executive of dnata Travel Group in the UK and across Europe.
She will start in her new role in November.
Pollard will report in to the previous holder of the role, John Bevan, who now oversees all aspects of the global travel business for dnata in the role of divisional senior vice president for travel.
Commenting on the appointment, Bevan said: “We’re delighted that another part of the dnata family will now be able to benefit from Ailsa’s expertise and leadership.
“I’ve had the pleasure of working with her for a number of years and know our team in the UK – as well as our valued industry partners – will enjoy working with her and will go on, together, to achieve great things.ADVERTISEMENT“These are challenging times for all UK travel businesses, and need clear headedness, agility, honesty and commitment to navigate.
“Ailsa has all of those qualities, as well as decisive strategic vision, a passion for the customer and operational know-how.
“Our UK organisation couldn’t be in safer hands.”
Pollard will assume responsibility for all of dnata Travel Group’s UK-based brands, including Gold Medal, Travel Republic, Travelbag, Netflights and Sunmaster.
She will be head of a leadership team and workforce numbering nearly 800 people.
Pollard said: “I’m looking forward to working with the UK team to emerge stronger from the pandemic.
“I know how tough the last 18 months have been on our people, our brands, our customers and our partners, but we have very strong foundations and the support of a global business on which we can collectively build an exciting future.”

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The Expedia Group has reported a net loss of $301 million for the three months to June.
The figure is, however, a substantial improvement on the loss of $753 million reported in the same quarter of 2020.
Expedia reported a $132 million operating loss for the quarter, took $2.1 billion in revenue and saw gross bookings worth $21 billion.ADVERTISEMENTThe half-year operating loss was $501 million, reduced from $2.1 billion in 2020, but this still left a $907 million net loss for the six months to June.
Expedia Group chief executive, Peter Kern, argued: “The second quarter saw continued improvement in many global travel segments, with North America in particular showing strength.”
Releasing the financial results for the period, he added: “Strong vacation rental performance and improved conventional lodging.”
However, this was “offset by continued softness in international travel, corporate travel and consumer interest in smaller markets and lower-end accommodation”.
“The road to full travel recovery remains bumpy until more of the world is vaccinated,” he concluded.

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New figures from the International Air Transport Association (IATA) have confirmed last year was the worst on record for the aviation sector.
Releasing the annual World Air Transport Statistics publication, the organisation said 1.8 billion passengers flew in 2020, a decrease of 60 per cent compared to the 4.5 billion who flew in 2019.
Industry-wide air travel demand (measured in revenue passenger-kilometres, or RPKs) dropped by 66 per cent year-on-year.
Total industry passenger revenues fell by 69 per cent to $189 billion in 2020, and net losses were $126 billion in total
IATA added air connectivity declined by more than half in 2020, with the number of routes connecting airports falling dramatically at the outset of the crisis and was down more than 60 per cent year-on-year in April 2020. ADVERTISEMENTThe decline in air passengers transported in 2020 was the largest recorded since global RPKs started being tracked around 1950.
“Last year was a year that we’d all like to forget.
“But analysing the performance statistics for the year reveals an amazing story of perseverance.
“At the depth of the crisis in April 2020, 66 per cent of the world’s commercial air transport fleet was grounded as governments closed borders or imposed strict quarantines,” said IATA director general, Willie Walsh.
“A million jobs disappeared.
“And industry losses for the year totalled $126 billion.
“Many governments recognised aviation’s critical contributions and provided financial lifelines and other forms of support.
“But it was the rapid actions by airlines and the commitment of our people that saw the airline industry through the most difficult year in its history.”
China became the largest domestic market in 2020 for the first time on record, as air travel rebounded faster in the domestic market following efforts to control Covid-19.
More Information
Take a look at the full World Air Transport Statistics document here.

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AITO has launched a highly critical attack on the UK government over what it claims are persistent failings to help the travel sector in the country.
The trade body decried the lack of support or comprehension for the huge problems faced by 500,000 travel industry employees.
AITO chairman, Chris Rowles, said these issues had the potential to hit to the economic recovery if they were not addressed. ADVERTISEMENTHe said: “Many families’ livelihoods are on the verge of being destroyed. 
“AITO members, and many others in travel, are long-established small- and medium-sized businesses – which have delivered hugely over many years in terms of employment, superb customer service and significant tax take – yet which are now at severe risk of being dumped on the scrap heap of failed companies because the government has denied travel the right to trade for the second successive – and vital – peak summer holiday season.”
The association is a 45-year-long alliance of some 200 specialist tour operators and travel agents in the UK.
It argues three key problems exist:

The mental strain involved of existing on zero income for 17 months without proper financial support that works for this particular sector is immense; it has been, wrongly, completely ignored by government to date.
Unlike hairdressers, who have had up to £18,000 in government aid to kick-start their businesses, and who start to earn immediately they are permitted to trade, travel businesses do not earn anything until their customers depart on holiday, which could be a year or more later. Yet travel businesses have been awarded a paltry £2,500 in government aid – up to £15,500 less than the hairdresser next door which is overrun by customers delivering them an immediate cash flow boost, totally unlike the situation with travel companies, which are prevented from trading by government.
Travel customers’ confidence to book has been destroyed by stealth as countries are moved from the green, amber and red lists each week.

“Added together, it all makes for a pretty big kick in the teeth for the entire travel sector,” stated Rowles.
He continues:  “The global travel taskforce review gives government a key opportunity to redress these key issues and, finally, to support the safe return of international travel. 
“Now is the last opportunity to save our travel companies from collapse, and to protect other linked sectors such as inbound travel and the retail industry, alongside the huge tax take delivered by outbound travel. 
“We will repay such support in bucket loads over decades to come – we are worth saving!”
AITO called for more updates to the travel lists, cheaper testing and mutual recognition of vaccination certification as ways the government could help the sector.

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