ABTA faces consortia revolt

ABTA is facing a revolt from independent agency consortia over a hike in subscription fees.

Triton members Advantage, Global and Worldchoice believe the rise, which took effect this week, is ‘fundamentally unfair’.

ABTA put the minimum subscription fee up from £540 to £750 on July 1, claiming the new rates were “justified and necessary” (See previous TravelMole story).

Worldchoice director and Triton spokesman Helen Burgess said: “One of the areas we gain strength as Triton is in negotiating and dealing with issues like the recent hike in ABTA subscriptions.

“Not only is the increase substantially more than many people realised, it is also fundamentally unfair since it hits the small agent hardest, with larger ABTA
members having the smallest percentage increase.”
 
Speaking after a Triton board meeting, she added: ”It is this type of issue where Triton, which represents the largest collection of agents on the high street, can have real power.

“Many independent agents see the rise in ABTA subscriptions and the way the increase has been handled as the final straw, and are concerned that following the FTO merger that the balance of power has shifted to the larger members.

“Agents are now questioning the relevance of ABTA to their business more than ever and are putting increased pressure on Triton to find a possible alternative.”
 
The board meeting created the future possibility of the three Triton members jointly negotiating commercial terms where appropriate, but with the majority of such deals still being undertaken separately. 
 
Burgess, said the meeting demonstrated how the combined strength of the group was still important, particularly in addressing key industry issues.

“Triton has been successful in halting the slide in commissions and the group still has a valuable role to play in protecting the interests of members of the three consortia,” she said.  

However, not all consortium are so anti-ABTA. 

Jane Atkins, nead of The Freedom Travel Agents’ Consortium, said: “Other consortia’s membership model is such that it is difficult for them to contain third party costs, such as ABTA fees, credit card bonds etc., for their members.

“However Freedom’s ‘full service’ membership model is able to do just that, and our members will continue to be able to offer their customers ABTA protection, without any direct cost to the member at all.

“Our approach has always been to contain and where possible, reduce our member’s overhead costs, whilst at the same time improving their margins.

“I am pleased to say that we continue to achieve this, in effect isolating our members from the spiraling costs of operating a travel agency.”

Meanwhile, Triton will be looking to work as a group to tackle Med Hotels looking to change its terms as principal status.

”Triton was originally set up to counteract the treats of serious reductions in commercial terms and commissions by some operators,” said Burgess.

“The Med Hotels announcement last week is seen as another example of a major change in commercial terms as it would seem to significantly shift risk to the agent.

“Triton is currently taking legal advice on the level of protection being offered to agents under the indemnity being offered to them by Med Hotels.”
 
by Phil Davies