AITO considers abandoning bonding requirements
The Association of Independent Tour Operators will consider abandoning its self-imposed bonding requirements to fall in line with the DIY package market.
The move comes amid growing frustration that airlines and accommodation-only specialists remain exempt from any form of financial protection.
Axing its own scheme, which covers all member products not protected by the legally required ATOL, would be a major strategic shift for AITO, which has long demanded all travel firms – including airlines – be forced to provide complete financial protection.
But unless legislation is introduced within 12 months – a timeframe regarded as extremely unlikely despite a Transport Select Committee prediction to the contrary (see separate Travelmole story) – AITO is likely to take action.
Chairman Richard Hearn insisted there is no advantage in the scheme when customers appear unworried about financial protection.
Speaking at the AITO conference in Dubrovnik, Mr Hearn said: “I am hoping we will consider this and that a debate can begin. Why should I bond when customers don’t care….and the law does not require us to do it?”
AITO council member Derek Moore asked whether it was “barking up the wrong tree” by demanding the introduction of legislation.
“Given that an increasing percentage of our customers don’t give a damn about protection, should we move towards a level playing field in the sense of deregulation?” he said. “Should we give up the idea of bonding and join the gang who are making money?”
Mike Bruce-Mitford, who launched the scheme, vowed to oppose any change.
“If we have one unique selling point it is this,” he told the conference. “It would be a retrograde step and I hope it does not come to pass. We would be writing a long suicide note for ourselves.”
Lynette Arblaster, from tour operator Arblaster & Clarke Wine Tours, urged members to promote the fact that AITO fully protects customers when other companies do not.
“This [bond] is an important part of the AITO brand. If we stop that we would lose what AITO stands for,” she added.
But Mr Hearn responded: “We are saying to customers ‘book with us and if we go under you will be protected.’ It’s a negative comment. You are putting failure in consumer’s minds.”
In an unofficial resolution at the conference, which suggested the scheme be dropped unless legislation is imposed within 12 months, 42 delegates agreed and 100 disagreed.
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