On 1st July 2018, new law came into force changing the definitions of what a Package Holiday is. These are not only significant to the travel industry but potentially to all businesses, clubs and societies. The UK Civil Aviation Authority (CAA), which runs ATOL, has recently published advice for schools who organise trips abroad, as this now falls under the new definition of what a 'package' is. (Read our news item that explains the new Package Travel Directive).
Advice to schools from CAA
"If a school puts together the components of a trip and takes payment from pupils (essentially creating a package holiday for its pupils), it is likely to be exempt from needing to hold an ATOL itself. This is because the EU directive on package travel and linked travel arrangements (EU Directive 2015/2302) excludes from its scope of protection trips that are offered or facilitated on an occasional or not-for-profit basis and only to a limited group of travellers. Therefore, if a school can satisfy these conditions, it can organise and sell its own trips to its pupils without ATOL protection. Nevertheless, it will will need to consider the risks in doing so and take out appropriate insurance policies etc."
If any of your clients are responsible for booking a school trip, the CAA has set up a dedicated ATOL webpage for the education sector. Read the full article on the CAA website.
"The new advice aims to prevent parents being left substantially out of pocket if the tour operator organising their children's trip collapses. Parents of children at one school were left with bills of £750 per head earlier this year after the school's chosen tour operator collapsed. The company concerned did not have ATOL protection."
We are here to help
Our experienced staff will help you explain the new regulations to your clients and how to protect their exposures with combined Tour Operators Liability and Professional Indemnity and Directors and Officers Insurances.
Please contact your underwriter or call us on 01923 298 440.
[Source: CAA. 24/10/18; Travel Law Quarterly. 24/10/18]