This guidance explains the circumstances in which a person selling under a general business travel agreement is exempt from the requirements of the Civil Aviation (Air Travel Organisers’ Licensing) Regulations 2012 and outlines the CAA’s expectations for demonstrating compliance.
This exemption applies to businesses booking travel for professional purposes, as opposed the making available of flight accommodation to consumers. Under the Package Travel and Linked Travel Arrangements Regulations 2018 and the ATOL Regulation 10(1)(h), travel providers offering arrangements under a general business travel agreement—where bookings are made in connection with a person’s/ company’s trade, business, craft, or profession—are exempt from the requirement to hold an ATOL and provide consumer financial protection.
To demonstrate compliance with the exemption, the CAA recommends that the business travel agreement should clearly state that the exemption applies to the flights and flight inclusive packages made available under that agreement and therefore are not subject to the financial protection requirements of the ATOL Regulations.
We encourage all parties involved in corporate travel arrangements to adopt written agreements that define the scope of services.
Travel Providers may use the following suggested language:
Purpose and Scope
This Agreement is entered into between [Client Name], acting in the course of its trade, business, craft or profession, and [Travel Provider Name].
“For the purposes of the Package Travel and Linked Travel Arrangements Regulations 2018 and the Civil Aviation (Air Travel Organisers’ Licensing) Regulations 2012/1017, the parties agree that this Agreement is a general business travel agreement solely for the purpose of booking travel arrangements in connection with your trade, business, craft or profession and you do not in turn sell these arrangements to other third parties. Services provided under this Agreement are therefore outside the scope of the Package Travel and Linked Travel Arrangements Regulations 2018 and the Civil Aviation (Air Travel Organisers’ Licensing) Regulations 2012/1017.”
The CAA advises that travel providers maintain records of all bookings made under such agreements and be prepared to present a copy of the agreement to the CAA upon request to demonstrate compliance with Regulation 10(1) (h) of the ATOL Regulations 2012.
You should seek independent professional advice if you are uncertain as to whether you require an ATOL.