Half of holidays are not covered by Atol protection, say MPs Published on Monday 30 April 2012 01:52 Government changes to the Atol system which protects holidaymakers from tour company collapses do not go far enough, a report by MPs said. Due to take effect today, the changes "are not widely supported," the report from the House of Commons Transport Committee said. The MPs said the Atol (Air Travel Organisers" Licensing) scheme, introduced in the early 1970s, was "now in a mess" and needed fundamental reform. Where once it covered the vast majority of holiday bookings involving air travel, it now covers fewer than 50 per cent and this proportion was "falling rapidly," the report said. "The government has not clearly based its reforms to the Atol scheme on evidence from consumers," said the committee. The MPs also said it was unfair that those booking a short, low-cost package paid the same Atol protection contribution (currently £2.50 a passenger) as those on extensive luxury holidays. The committee recommended this contribution should be linked to the value of the holiday. Changes by the government coming in today include Atol cover being extended to "Flight Plus" bookings which will require tour operators to apply Atol protection when accommodation and/or car hire is booked within a day of booking a flight. In addition, a bespoke Atol certificate will be issued to each customer to clarify the protection provided. The report went on: "Despite demands by the industry for reform, the short-term changes being introduced by the government are not widely supported. We welcome the greater coverage and clarity that these changes are expected to bring. We are concerned, however, that the government has not based these reforms on an analysis of consumer behaviour and views. In addition, flight-only sales by airlines will remain outside the Atol scheme, with no clarity on if or how this should be addressed. The committee continued: "We recommend a thorough review that distinguishes between the issues of consumer protection and the repatriation of holidaymakers stranded abroad as a result of the financial collapse of their tour operator or airline." Launching the report today, the committee's chairwoman Louise Ellman will say: "We welcome the changes to Atol that are being introduced. But other aspects of Atol remain unsatisfactory. The government does not have a plan for comprehensive reform. It has listened to the travel industry, but has not researched the views or booking behaviour of passengers and holidaymakers. Aviation Minister Theresa Villiers said: "These reforms will equip Atol to deal with the realities of the modern holiday market, enabling the scheme to protect holiday makers more effectively for many more years to come. We will consider the report and its recommendations carefully and will respond in due course.