AAC launches urgent review of agency relationships following Thomas Cook collapse
The Association of ATOL Companies has embarked on a full review of members’ relationships with travel agents following issues that came to light following the collapse of Thomas Cook.
It says the failure uncovered a ‘systemic’ policy of collecting final balances months in advance – and in some cases more than a year in advance – causing losses to its members many times greater than expected.
"It appears staff were incentivised to give customers discounts or promises of money cards to extract funds far in advance of the due date," said Alan Bowen, the AAC’s legal adviser.
He said members that sell through agents want to continue to do so, but not at the expense of putting their own business at risk.
"We are looking at alternative ways of working, some of which would adversely affect agents and this is an issue we want to avoid," he said.
"We could insist on funds being held in trust in a similar fashion to IATA, or require customers to pay direct to operators with commission being refunded, a policy chosen by a number of cruise lines at present. Had there been online ATOL Certificates, and had they identified the funds collected, a lot of the pain our members are suffering could have been avoided."
Lindsay Ingram, AAC chair and general manager/CEO of Newmont Travel, added: "We would welcome discussion with travel agents and other ATOL holders with the urgent aim of finding a mutually acceptable solution because we cannot continue with the current clear lack of trust which the recent failure of Thomas Cook has left us with."
The AAC, formed in 1994, represents the interests of businesses selling scheduled flights and packages. The value of sales by its members in 2018 exceeded £4 billion.
Its members include Gold Medal Travel Group, JTA, Lastminute, Loveholidays, Southall Travel, STA Travel and Trailfinders.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Airlines suspend Madagascar services following unrest and army revolt
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airbnb eyes a loyalty program but details remain under wraps
Air Mauritius reduces frequencies to Europe and Asia for the holiday season