CTA tour operator members will be aware that last year saw the introduction of updated regulations on package travel protection with the new Package Travel & Linked Travel Arrangements Regulations coming into force on 1 July 2018.
The updated regulations identify the three routes for providing insolvency protection to customers: Bonding through an approved body, such as Bonded Coach Holidays; Insurance; and Trust Account.
For the Trust Account option, funds must be held by an independent trustee and all costs must be covered by the package organiser (operator) including the costs of administering any insolvency. The regulations also requires operators to have insurance in place to cover repatriation, and if necessary accommodation for passengers prior to repatriation. This must all be clearly stated with the names of trustees and where the money is held.
It is recommended that all operators review their protection arrangements to ensure they are fully compliant with the 2018 regulations, and in particular, those companies using the Trust Account option should ensure they have met the insurance requirements.
A formal guidance document from the Department for Business, Energy & Industrial Strategy is available here and a ’10-step Guide’ to the regulations by Bruce Treloar, Trading Standards Lead Officer for Holiday and Travel Law, is available here.
For more information on Bonded Coach Holidays see http://www.bch-uk.org/