As far as I am aware, unless things have changed a dynamic package is one that is packaged by a travel agent. They have to hold an ATOL. It has to be sold and invoiced at an inclusive price. The customer gets an ATOL receipt. In this case the customers' contract is with the agent, they become the tour operator. If somethings goes wrong, it is the tour operators responsibility to sort it out. The company I used to work for packaged the majority of the holidays it sold and when something happened eg goldtrail etc. it was our responsbilitly to source alternatives or refund the customer in full, for the whole holiday.

The problem is with the component built holidays that are priced seperately and do not need to be covered by an ATOL. The agent is just an agent, and the customers' contract is with the individual supplier. If one part fails, there is no come back on any of the other parties involved. This is where you need to make sure you have adequate travel insurance.

There are 'mystery' enquiries made at agencies. We used to set this up ourselves. I don't know if there still is but both TTG and TW used to have a 'mystery' shopper article every week, where they tested and rated different agencies.