CAA v Travel Republic

The recent case of CAA v Travel Republic saw the Civil Aviation Authority launch yet another criminal prosecution against the online travel agent Travel Republic for breach of the requirement to hold an ATOL. The decision is important as it narrows the scope for finding online travel agents such as Travel Republic have organised 'package holidays'. The case is the latest in a line of cases that impact on a travel agents liability.

The ATOL (Air Travel Organisers Licence) is aimed at protecting consumers and their money in the event of a tour operator going bust. The scheme works by requiring those who organise 'package' holidays to hold an ATOL.

Handing his judgment down in Westminster Magistrates Court, the judge (Nicholas Evans DJ) decided Travel Republic did not act as a tour operator and did not put together 'package' holidays. As a result, it did not require an ATOL and had not committed a criminal offence. The decision may surprise some holidaymakers who book through internet based travel agents and click on links such as 'package holiday' assuming that they then go on to enter a contract with one company. The reality is often that several separate contracts will have been entered into, one for the flight, one for the accommodation and others for the various other elements making up the holiday, such as resort transfers.

Every case will turn on its facts but the CAA v Travel Republic judgment shows yet again that holidaymakers need to make sure they keep an accurate record of how they book their holiday and what steps they go through from browsing for holidays, flights, accommodation and other additional extras to receiving the booking confirmation. All of this information will be critical in establishing what protection a consumer is entitled to in the event that something goes wrong. Of particular interest in this case was the judge's consideration of call transcripts and recorded telephone conversations from the time of booking.

The question of whether a holidaymaker has booked a 'package holiday' is not always an easy one to resolve but can have major consequences, notably if it means determining whether a claim can be pursued in the English courts or needs to be furthered abroad. The Travel law team at Blake Lapthorn will quickly identify what protection is available in a given case and what steps can be taken resolve any dispute which arises.

For further information, please contact Daniel Scognamiglio in the Travel team by telephone 023 8085 7339 or email daniel.scognamiglio@bllaw.co.uk.