16 July 2010

Irish agents call for bond reforms after company goes bankrupt

Irish travel agents are calling for an overhaul of their travel licensing laws after 1800Hotels filed for bankruptcy earlier this week.

The Irish Travel Agents Association (ITAA) said because the online hotel booking company, based in the US and Ireland, was not bonded, customers have been left unprotected.

CEO Simon Nugent said: Ã¢â¬ÅâœWe call on the Minister for Transport, Mr Noel Dempsey to act urgently on reform of protection for the travelling consumer.

Ã¢â¬ÅâœAfter all, the current Travel Act was written back in 1982 before the internet was invented.

Ã¢â¬ÅâœIt is full of holes as TuesdayÃ¢â¬â¢s news reveals. Ironically proposals for reform have been with the Department of Transport since January 2009 but 18 months later, the Minister has not yet even commented on them.Ã¢â¬~

He said the association was currently exploring whether it can make arrangement with some of the supplier Ã¢â¬Åâœbed banksÃ¢â¬~ who used to work with 1800Hotels to minimise the problems for consumers.

Ã¢â¬ÅâœHowever, the news is not good," he said. "Several bed banks have told us that all forward bookings made by 1800hotels have already been cancelled.Ã¢â¬~

Hundreds of Irish consumers are understood to have been hit by the collapse of the online travel reservation company.

The ITAA is advising 1800hotels.ie customers who made bookings on the site to ask a licensed travel agent to help them confirm or rebook their accommodation.

1800Hotels has filed papers for the issuance of an injunction to protect customers from supplier cancellations.

A US Bankruptcy Court Judge has agreed to grant a temporary stay preventing future cancellations by two of the company's largest suppliers.

A statement on 1800Ã¢â¬â¢s US and Ireland websites says: Ã¢â¬Åâœ1800Hotels sincerely apologizes to any customer that experienced a cancellation. We are working diligently to protect both our customers and our employees. We will continue to pursue all legal alternatives to reduce any negative impact on our customers' travel plans.Ã¢â¬~

By Bev Fearis