Does ATOL have a future or is there a better alternative

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Does ATOL have a future or is there a better
alternative?

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Whats going on?
WHOS NEXT ?????
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Current economic climate

• weak against US and
• Heading for recession?
• House prices down 13.7 year on year, plus
  increase in repossession
• 65 increase in companies seeking help via
  administration/insolvency
• BA profits plummet 91.6 - Bleakest trading
  environment ever
• Ryanair 2nd half profits down 47 - Only 4
  airlines will survive
• New car sales fall in Oct 08 at fastest rate for
  17 years - 23 year on year

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Launched
Monday 15 September 2008
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Why Supplier Failure Cover?

• 20 million customers book independent holidays
• ATOL does not cover these types of holidays!
• 40 of customers are unprotected against
  financial failure of airlines
• Businesses are continuing to fail
• It offers protection where ATOL and credit cards
  do not
• Most travel insurance policies do not provide
  this cover

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Who does it protect?

• The consumer SFC is an insurance policy which
  protects in the event that the supplier of any
  component fails
• The agent it protects where ATOL to ATOL
  transactions are made, there is a failure and in
  the eyes of the CAA no failure has occurred as it
  is not the principle
• Your brand when the consumer loses their money
  they will blame you also, even when it is not
  your fault

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How does ATOL protect?

• ATOL is a financial protection scheme obtained
  from the CAA
• ATOL protects the Consumer against the failure of
  an operator meaning they will not lose the
  money they have paid
• ATOL protected flights are offered with financial
  protection but this covers only the amount of
  money paid for ATOL protected elements of the
  booking NOT the actual costs to rebook the
  flight
• ATOL does not cover unprotected ATOL elements
  e.g. Hotels, Car hire etc.
• Question Does ATOL protect Agents/Businesses?
• Answer in most instances - NO

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What does SFC cover for?

• Pre-Departure Cancellation up to 5,000 per
  insured person
• Each insured person for any financial loss they
  suffer, being
• Non-refundable deposits and amounts paid (or have
  contracted to pay), where the consumer is unable
  to commence their trip because one of the Third
  Party Providers of the trip has become insolvent
  and it is impossible to replace that element of
  the trip
• Insolvency Replacement Cost(s) up to 5,000
  per insured person
• If one of the Third Party Providers of the
  consumers trip has become insolvent and it is
  possible to replace that element of the trip, the
  policy will pay up to 5,000 for each insured
  person for the cost of replacing that element to
  an equivalent standard to that of the original
  booked
• The policy will also pay up to 50 for each
  insured person if personal luggage is lost or
  damaged whilst under the care, custody or control
  of one of the Third Party Providers of the trip
  following them becoming insolvent
• Travel Delay Replacement Ticket(s) up to 5,000
  per insured person
• If the flight, sea crossing, coach or train is
  cancelled and no alternative is provided within
  12 hours of the intended departure time the
  policy will
• Pay for the cost of buying a replacement ticket
  to an equivalent standard to that of the original
  booked, to allow the trip to continue

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What doesnt it cover?

• First 50 of any claim
• Claims that are payable by the CAA / ATOL
• Costs that can be recovered via a credit or visa
  debit card

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Product comparisons
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Who should buy SFC?

• Online retailers selling non-ATOL bonded holidays
• High street agents dynamically packaging
• Travel agents with ATOL bonds
• Tour operators with ATOL bonds

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Summary

• Unprecedented failures in the last 12 months
• Confusion in the market as to what is / not
  covered
• ATOL does NOT provide adequate protection for
  many holidaymakers - they are confused
• SFC clear, simple and affordable product - a
  possible way forward?

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Please welcome our panel for todays debate

• Simon Ferguson Publishing Director, TW Group
  (moderator)
• Antony Martin Managing Director, Rock
  Insurance
• Kane Pirie Managing Director, Travel
  Republic
• Steve Endacott CEO, On Holiday Group
• Matt Cheevers Managing Director, Teletext
• Roger Bray Freelance Journalist (aviation
  specialist)

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Thank you for your time
Antony Martin Managing Director, Rock
Insurance 07855 309455 antony.martin_at_rockinsuranc
e.com