Opodo travel news
£1 holiday cover levy announced
23 Aug 2007
An extra £1 charge will be added to package holidays from 2008 to go towards a rescue fund for families left overseas if their tour operator goes bust.
The Department for Transport's scheme is expected to raise £26m a year from the small levy, which will be directed towards travellers who've lost out after booking their holiday.
As well as paying to help families return to Britain if they are stranded abroad, compensation will also be available for trips that were paid for but never materialised.
In a letter to the Civil Aviation Authority (CAA), transport minister Jim Fitzpatrick put forward the details of the plan.
'Following careful consideration of the responses, along with the analysis and advice provided by the CAA, the government has decided 'in principle' that a £1 ATOL protection contribution should be introduced from 1 April, 2008.
'Subject to the decision being confirmed, the current arrangements whereby all ATOL holders are required to provide bonds will end from that date,' he added.
The ATOL scheme was originally designed to compensate travellers who'd suffered if their tour operator went under, but has faced recent difficulties after higher than expected numbers of travel firms going bust.
Click here to plan and book flights, hotels, city breaks, rental cars and holidays with Opodo.
© Adfero Ltd
The Department for Transport's scheme is expected to raise £26m a year from the small levy, which will be directed towards travellers who've lost out after booking their holiday.
As well as paying to help families return to Britain if they are stranded abroad, compensation will also be available for trips that were paid for but never materialised.
In a letter to the Civil Aviation Authority (CAA), transport minister Jim Fitzpatrick put forward the details of the plan.
'Following careful consideration of the responses, along with the analysis and advice provided by the CAA, the government has decided 'in principle' that a £1 ATOL protection contribution should be introduced from 1 April, 2008.
'Subject to the decision being confirmed, the current arrangements whereby all ATOL holders are required to provide bonds will end from that date,' he added.
The ATOL scheme was originally designed to compensate travellers who'd suffered if their tour operator went under, but has faced recent difficulties after higher than expected numbers of travel firms going bust.
Click here to plan and book flights, hotels, city breaks, rental cars and holidays with Opodo.
© Adfero Ltd
Archive
Quick search
News by categories
Latest news
