In the wake of the Travel Republic victory verdict this week, TTG talked to industry leaders about the implications of the court ruling

Tanzer, chief executive, Abta
“The failure of the CAA’s case against Travel Republic marks a low point in the administration of the travel industry’s system of financial protection. The uncertainty that surrounds this area has led to the initiation of expensive and ultimately futile proceedings against a prominent Abta member. The case for reform of the Atol scheme and the Package Travel Regulations is now irrefutable.”
 
David Speakman, chairman, Travel Counsellors
“While this is a win for those who do not want to operate within an Atol licence, it is a blow to customer financial protection. The industry must realise that customer financial protection is a must for an industry that expects by right payment in advance by
the customer.”

Mike Greenacre, managing director, The Co-operative Travel
“It begs the question, why do I need an Atol? If I do, what is it I’m gaining if other people can do exactly what we do without one? We are disappointed, not about the individual case but about the implications. This is a retrograde step for consumers and we will have
to take a socially responsible view on it.”

Dermot Blastland, chief executive, Tui Travel
“This outcome is disappointing. This may well have been the legal position, but the issue the CAA has now got is that it does not solve the problem that consumers are confused about whether they are protected or not. They cannot seem to create a level playing field. It’s daft: they want people to be protected – and everyone understands that is correct – but it is going to require a bit of boldness to achieve that.”

Todd Carpenter, founding director,Travel Trust Association
“The decision means rafts of consumers who would have been legally protected in the future will now not be afforded that opportunity, until this situation is rectified. TTA urges the CAA to address this particular issue as quickly as possible rather than go through a complete rewrite of the Atol regulations.”

Alan Bowen, legal adviser to the Association of Atol Companies
“For AAC members this is a major opportunity to emphasise that they always protect package holiday sales through the Atol scheme. Bringing clarity to financial protection must be a priority for the entire industry. This decision is likely to encourage more agents to dynamically package without explaining the consequences to customers.”

Andrew Burnham, principal at accountants, MacIntyre Hudson
“There is a danger that this outcome undermines the CAA’s efforts to maintain the financial health of both Atol holders and the Air Travel Trust Fund. The strong support of the government and the co-operation of trade bodies will be necessary to find a universally accepted protection mechanism.”

Rochelle Turner, head of research, Which? Holiday
“It’s really disappointing that there is still no clarity around what a ‘package
holiday’ is, which would make it is easier for people to know exactly what they are buying. Anyone booking a holiday should do so through an Atol-provided agent, or pay on a credit card so that they are financially protected.”

Bob Atkinson, travel expert, Travelsupermarket.com
“The underlying issue remains that consumers are still exposed to the risks of buying unprotected holidays. We call on the EC to review the outdated directive on package holidays and government to reform the Atol scheme. They should ensure that however consumers book
and pay they are adequately protected.”

• Freedom weighs up CAA challenge (12 Nov 2009)
• Judge condones CAA's right to prosecute (10 Nov 2009)
• CAA v Travel Republic: 'CAA poisoned evidence' (26 Oct 2009)