10 September 2009

ABTA plans major changes over customer protection

ABTA has called a special General Meeting to vote on ways to strengthen protection for customers booking with ABTA members.

The meeting will be at its office at 30 Park Street, London SE1 9EQ at 12.00 hours on October 2.

Members will be invited to vote on proposals to change the Articles of the Association, which govern customer protection.

Ã¢â¬ÅâœThis year has seen a large number of consumers affected when travel agents have failed and the suppliers of accommodation have refused to fulfil bookings that they've not been paid for,Ã¢â¬~ said the association.

Ã¢â¬ÅâœThis has resulted in very damaging press coverage for the industry as a whole, and in credit card merchant acquirers requesting additional security from travel companies."

ABTA members will be asked to vote to ensure all members take responsibility for money paid by their customers to companies through whom they distribute their travel services.

ABTA is also inviting members to vote on a proposal to change the qualifications for membership so that applicants for membership or continued membership would be subject to greater scrutiny in respect of previous directorships of failed companies.

It is also proposing to provide a greater restriction on the use of trading names that have been associated with failed companies.

Ã¢â¬ÅâœThis is an important point of principle, and the change will bring clarity to members and customers alike," added chief executive Mark Tanzer.

"ABTA members operate a range of business models, and we are happy to let these flourish. But the principle that an ABTA member is responsible for money taken through an agent, or sub-agent, applies to all.

"These are challenging times and it has never been more important for consumers to have confidence in the travel companies they choose.Ã¢â¬Åâœ

By Bev Fearis

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Your Comments (3)

HOW IS IT POSSIBLE ?

Firstly the Goverment has closed their eyes to protection of customers. Secondly we are going to pay &#pound;2.50 from 01/10/09 for ATOL's BIG BLACK HOLE of approx &#pound;40 million Agent's & Tour Operators are behaving that every thing is ok but it certainly not. There is no quick fix when the UK government refuses to recognise that there is a very serious flaw in protecting the consumer. To summarise the ATOL protection is flawed to the extent that another XL failure is probably looming and the consumer is again going to get hurt. This is virtually the same secenario as with the banks where there has been no PROPER supervision. And to add salt to injury now the banks either want a huge deposit for merchant facilities or you say goodbye to your facility. I am very much interested in how you can fix the above.

By Dipak Shah, Monday, September 14, 2009
ABTA response

Matthew makes a very good point and of course ABTA can't be responsible for companies outside our Membership. That's why we are encouraging the Government to widen the scope of financial protection and at the same time do our bit to ease the confusion that currently exists with consumers and encourage our Members to adhere to the values and standards that the ABTA brand stands for.

By casia zajac, Friday, September 11, 2009
This won't work....

I applaud ABTA for attempting to reduce risk to the public from ABTA travel agents that fail having taken money from their customers and not passed it to the suppliers whom they have booked services. HOWEVER, how will an agreement for ABTA members ONLY, allow ABTA to then send a message to the public saying booking with an ABTA agent means their money and holiday is secure?? What happens when an ABTA agent books with a non ABTA supplier, then the agency fails? The non-ABTA supplier, will not honour the forward booking therefore the customer is left unprotected again, as they are now? Maybe I am missing something? Can anyone make more sense of it than me?

By matthew stuart, Thursday, September 10, 2009