Air Travel Organisers’ Licensing Bill

Debate between John Hayes and Robert Courts

2nd reading: House of Commons
Monday 3rd July 2017 Commons Chamber

[Robert Courts]

My hon. Friend makes an outstanding point. We could be sitting in the Chamber now, if we were not paying attention to the debate—I am sure every Member is paying attention with alacrity—and booking ourselves a holiday on our mobile phone. Such a world was not even envisaged in 1973, but we did have the advent of the package tour, and British Airtours, a subsidiary of British Airways, was one of the leaders. People’s ability to have their package holiday protected, provided that they had a flight, was a major innovation, and it is something that we have now lost.

I say that from personal experience because, through my work, I have first-hand knowledge of how the package holiday industry now works. Not only do we have what is called “dynamic packaging”, in which a vast choice of providers, destinations and activities are available to members of the public, who can tailor bespoke packages for themselves, but those selling holidays can seek to step around some of the relevant legislation. A website might purport to be operating and offering a package but, when one actually looks, it turns out that the flight is offered by a subsidiary, the accommodation is operated and offered by another company, and other packages—perhaps excursions—are dealt with by someone else. It is quite easy in this day and age to step around the regulations that ATOL provides, which is why the Bill is so necessary. The travel market has changed significantly in recent years. In those days, and it was a romantic era—

[Mr John Hayes]

Talk of romance was not what drew me to my feet, although it might have done. My hon. Friend talks about the changing character of the industry and the need to ensure that the regulations are updated. Reflecting on the remarks made by the hon. Member for Middlesbrough (Andy McDonald), who speaks for the Opposition, I reaffirm my commitment to consult further before any regulations are brought before the House under the affirmative procedure. I draw the attention of my hon. Friend the Member for Witney (Robert Courts) to section 71B of the Civil Aviation Act 1982, which already makes provision for consultation by the CAA in the light of any such changes.

[Robert Courts]

I am grateful to the Minister for making that clear. The prospect of amendment has been ongoing for some time, so I am delighted that we are addressing it in the House today.

Although the image we all have of walking down the high street, flicking through a brochure and speaking to somebody behind a till still happens in many cases—many people avail themselves of the services that exist, including at the excellent travel agencies in my constituency—many people do not do that. It is now so easy to go on the internet to put together a bespoke package for ourselves. In a sense, we have become our own travel agents, but that brings challenges as well as opportunities for this new generation of travellers. In this House we embrace the opportunities that come with those challenges. Indeed, I would go so far as to say that we have seen the free market in action with the expansion of providers, destinations and activities. We have seen so many of the advantages that a free market can bring in the interest of consumers. Indeed, the online travel market has led to reduced costs for holidaymakers, as well as increased choice and flexibility.

Of course, we have to reassess protections at the same time as we reassess, and benefit from, those changes. The mix and match of lower prices and wider opportunities has to be seen alongside the protection. Many holidays now fall outside the scope of ATOL, which is very different from the situation in 1973. In 1998, approximately 90% of all leisure flights were covered by ATOL, but I understand that the figure has fallen to under 50% in recent years. I welcomed the Minister’s comment at the start of his speech. As much as I have praised the free market and its benefits in terms of opportunities, choice and reduced costs, I also understand that there is a role for Government. I agree with him that it is appropriate for the Government to step in and ensure that consumers in this field are protected.

That is why I welcome the measures in the Bill to address such changes. The Bill will ensure that the ATOL scheme keeps pace with innovation in the online travel market, while also ensuring that protections are in place, regardless of whether someone books online or on the high street. We will therefore ensure that more than 20 million holidaymakers each year continue to be protected.