A month on from the September ATOL renewal deadline, TTC’s Martin Alcock reflects on how the experience was for travel businesses. Speaking to Travel Weekly, Martin, along with other industry experts, shared a few takeaways:
The majority sail through
Most travel companies had a straightforward ATOL renewal, following three years of strong performance and healthy booking figures post-Covid.
“I share the view that 90% of businesses are fine but 10% awful. Clients sailed through [the renewal process] provided they could meet the CAA’s requirements.”
Martin Alcock, Travel Trade Consultancy
Struggling minority
A small number faced a ‘fraught’ renewal, particularly smaller mass-market operators, companies carrying Covid debts, and firms newly crossing the £20million ATOL turnover threshold.
£20million threshold problem
The decade-old £20 million turnover threshold is now catching a growing number of businesses, including more owner-managed operators, subjecting them to a “completely different set of requirements” and stricter financial tests.
“The £20 million threshold hasn’t changed for 10 years and it’s capturing more and more businesses – especially a lot more owner-managed operators, putting pressure on fairly well-run businesses.”
Martin Alcock, Travel Trade Consultancy
CAA’s pragmatism
The CAA has reportedly lessened renewal requirements for some struggling businesses to avoid precipitating failures, opting instead to use licensing and booking restrictions as a backstop.
You can read the full article on travelweekly.co.uk.
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