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Regulator introduces simpler process for future ATOL agency agreement updates

The UK Civil Aviation Authority has confirmed it will introduce changes to ATOL agency agreement requirements from 1 April 2027, helping to reduce administrative burdens for travel businesses when future regulatory updates are made.

Before the new arrangements take effect on 1 April 2027, ATOL holders will need to take the necessary steps to ensure that they are able to update and reissue their agency agreements from 1 April 2027.

Once this one-off update has been completed, future changes to CAA Agency Terms will automatically apply, removing the need for ATOL holders to repeatedly reissue agency agreements every time those terms are amended.

Although, in the future, amended terms will automatically apply upon publication, ATOL holders are encouraged to update the wording of their existing agency agreements as soon as practicable. The Civil Aviation Authority considers best practice to be updating agreements within six months of publication of revised agency terms.

The proposal was first consulted on as part of the 2021 ATOL reform programme and received broad support from industry respondents, who recognised the opportunity to simplify administration and make future regulatory changes easier to implement.

Geoff Wingfield, Head of Regulatory Assurance at the UK Civil Aviation Authority, said:

"This is a practical change that will reduce unnecessary regulatory burden for travel providers. While ATOL holders will need to update their agency agreements on 1 April 2027, it removes the requirement to repeat that process every time Agency Terms are amended in future.

“By making future updates simpler and more efficient, we're reducing administration for businesses while maintaining the consumer protections that sit at the heart of the ATOL scheme."

The UK Civil Aviation Authority has contacted ATOL holders today with further information about these changes.

Notes to editors

  • The changes will take effect on 1 April 2027. ATOL holders will be required to update and reissue their agency agreements from that date.
  • The changes involve amendments to Agency Term 11 and ATOL Standard Term 2.2 in the Civil Aviation Authority’s Official Record Series 3 (ORS3)
  • Following implementation, future updates to the CAA's Schedule of Agency Terms will automatically apply from the date of publication, removing the need for ATOL holders to reissue agency agreements each time the Agency Terms are amended.