21 July 2010

Goldtrail collapse costs agents thousands of pounds

A Freedom Travel member claims she has been left thousands of pounds out of pocket by the Goldtrail collapse because of an administrative error by the travel distribution group.

The Wigan-based agent claimed she booked dynamic packages with Goldtrail without realising that the operator had been removed from Freedom Travel's ATOL licence for 2010.

"Goldtrail bookings were covered by Freedom Travel last year and I didn't realise they'd been removed from the list when I made the bookings," she Linda Welch of Little Travel Shop.

"Freedom accepted the booking and took payment for the ATOL, but no protection was provided.

"I complained to Freedom that I should have been automaticcally warned that the Goldtrail had been removed from its list when I made the booking and I dread to think how many others were not aware of this situation and have found themselves liable for the cost of the clients' lost holidays."

Welch said she has had to refund clients £4,000 for three bookings following Goldtrail's collapse.

Hundreds of more travel agents could be left out of pocket by the Goldtrail collapse due to an administrative oversight, which led many of them to book holidays with the tour operator as ATOL holders rather than retailers.

In December last year, Goldtrail changed the invoices issued to some agents to show that the bookings were being made on an ATOL-to-ATOL basis, but many agents failed to spot the switch as the Turkey operator did not bring it to their attention.

The Civil Aviation Authority is insisting that retailers who inadvertently made ATOL-to-ATOL bookings with Goldtrail must pay repay the Air Travel Trust fund £150 plus tax for each of their customers brought back home.

ABTA has contacted the CAA to complain, saying that it believes the ATOL-to-ATOL invoices were issued in error.

"We believe that our members sold seats on a retail basis and the CAA should treat them as such. We are waiting for a response from the CAA," said ABTA spokesman Sean Tipton.

He said it was too early to say how many agents have been left to foot the bill of the Goldtrail collapse.

By Linsey McNeill

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Your Comments (4)

Who am I ?

I want to arrange packages but I dont want to pay any extra taxes. I want the customer to think I am the principal, but if anything goes wrong it's nothing to do with me Who am I ? Certainly not a tour operator - but the customer more than likely thinks you are - and that is an industry and Government problem.

By Nick Cooper, Thursday, July 22, 2010
Tour Operator or Travel Agent?

I repeat the same question. decide which one you want to be and take the rough with the smooth.

By Philip Breckner, Thursday, July 22, 2010
atol and goldtrail

As a Freedom member may I add a little to defend the group. We have a list of companies to use within the Atol this is posted on Freedom today and any updates are in the news section,when amendments are made these are backed up by e mail to each branch.I am sorry for the loss this agent has had but if a simple check had been made,on the atol supplier list she would not have been in this position. Furthermore I assume these were goldtrail flights, if these had been booked through our escape low cost flight system all would have been covered.Break the rules of the Atol and it comes back and bites you sorry.

By Ian Sharrock, Thursday, July 22, 2010
Agent or Tour operator ??

if the agent look in the invoice and see if there is no Atol charge of &#pound;2,50 then should realize it was ATOL TO ATOL.If agent wants to play tour operator role with Dynamic Packaging then this happens.So many players in the market and should be reconcilidiate this way and everybody should does what is their role or bonding.

By ALPASLAN SAG, Wednesday, July 21, 2010