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British travel agents win case over package holidays

January 17, 2006 |

British travel agents won a legal claim over package holidays that may save the industry millions of pounds annually. The new judgment will allow agents to sell increasingly popular "tailor-made" holidays without paying in to the Civil Aviation Authority's licensing system.

British travel agents won a legal claim over package holidays that may save the industry millions of pounds annually.

The Association of British Travel Agents challenged guidance issued last year by the U.K.’s Civil Aviation Authority that broadened the definition of all-in-one package trips. Agents booking package vacations must hold special licenses and insurance, managed by the authority.

The High Court in London today quashed the guidance, ruling that it didn’t properly define “inclusive price’’ arrangements, a key feature of package deals.

The trade group said the judgment would allow agents to sell increasingly popular “tailor-made’’ holidays without paying in to the Civil Aviation Authority’s licensing system. Former Association Chief Executive Ian Reynolds estimated the guidance would have affected as many as 3.5 million trips annually and 17 million pounds ($31 million) in additional bonding premiums.

“This is very good news for our travel agents members,’’ Association Chief Executive Mark Tanzer said in a statement. “We now have a clear interpretation of the law and agents can continue their business providing tailor-made arrangements as they always have done, without the added burden of further cost and regulation.’’

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