Currently in the process of setting up an OTA which specialises in searching and booking complex itineraries online (twin/multi-centres, stop-overs etc). The technology was difficult and time consuming to develop but nothing compared to the myriad of operating models for travel companies!
We are trying to figure out whether to setup as a Flight Plus operator (as we are effectively a dynamic packaging engine with flight, car, hotel, transfers etc from different providers) or a tour operator (we have an ATOL application pending to support either model).
Flight Plus seems to be a way to avoid falling under the Package Travel Regulations and the applied legal responsibilities. Are there any financial benefits to operating this way? (i.e avoiding TOMS).
Tour Operator looks like a more classic business model with a single package price and margin control within the business model. As packages sold this way would fall under PTR, we are worried that this could be the road to expensive legal bills (should anything go wrong for the customer abroad) and risky for a start up.
Also, with reform to PTR due in 2018 (is this still happening post Brexit?) would all businesses that sell flight + acomm fall under PTR and hence Tour Op would be the only route to go down?
Conscious these are pretty in depth questions but any help would be much appreciated.
Apologies for the delay answering this post. Do you still need some information on this topic.
If you could provide any further guidance that would be great.
this may answer a few questions but happy to discuss further if you need.