An ATOL holder that sells flight-only or packages through agents is required to have a written agency agreement with each of its agents. If the correct agency agreement is not in place the ATOL holder and the agent are in breach of the ATOL Regulations.
Here are a few useful points to note:
- Agency agreements must contain the Schedule of Terms published by the CAA in Official Record Series 3.
- Agency agreements must include the name of the ATOL holder and its agent.
- For Agency Term 10 you should include the wording from either 10A or 10B, not both.
- Agency agreements can be in electronic or hard copy.
- To obtain acceptance of agency agreements, some ATOL holders may request their agents to sign and return the agreement or e-mail their consent to the ATOL holder or refer to their website and tick a box to confirm consent to the agreement. Other ATOL holders may choose to issue agency agreements to their agents, which the agents will be regarded as having agreed to when the agents make bookings on behalf of the ATOL holder.
- In the CAA so that claims from consumers that booked through the agent can be processed. If an agent does not have an agency agreement, the agent will be liable to refund the consumer. Event of failure of an ATOL holder, an agent is required to provide a copy of its agency agreement to the consumer.
Schedule of Agency Terms
Section 1.4 of the Official Record Series 3 includes the Terms to be included in agreements between ATOL holders and their agents. Section 1.4 can be found on page 28 of Official Record Series 3.