ATOL flaws raised as industry reacts to Globspan failure
Thursday, 18 Dec, 2009
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Globespan customers have been left “high and dry” by the passenger protection system current system, TUI Travel operators say.
Thomson and First Choice today confirmed they will continue to lobby the Government in the hope that a fair and just system will one day be imposed.
Sharing the sense of exasperation felt by Globespan customers, Dermot Blastland, managing director of Thomson and First Choice, said: “The first thing to do when this sort of thing happens is to get extra flights sorted, and make it clear to people how we can help them where we can.
“But then we step back and wish that fare’s fair. It should be, but it’s not. At the moment you have different rules for different businesses, and a lot of people get caught up in the confusion.”
Blastland added: “What we are seeing again right now could easily have been avoided if the government had heeded our previous calls for all providers of overseas leisure travel arrangements to be treated the same.
“We will continue to lobby the government to encourage a level playing field – this just shows how crucial it is.
“If you’ve booked with package tour operators like First Choice and Thomson, then you’ve got financial protection to back you up. That’s valuable peace of mind.
“But customers who opted instead for scheduled airlines, low cost airlines and online intermediaries often do not have the benefit of financial protection.
“People can get stranded overseas, or left seriously out of pocket. All companies should face the same obligations, so that some customers don’t face these nasty hidden costs.”
Mike Greenacre, managing director of The Co-operative Travel, said: “This is another reminder for the Government – as if it were needed – that without a level playing field for travel providers, the consumer is the one taking all the risk.
“Holidaymakers who aren’t ATOL-protected are paying for that lack of regulation right now.
“Holidaymakers who aren’t ATOL-protected are paying for that lack of regulation right now.
“We at The Co-operative Travel called on the Government to take action when XL collapsed last year, and still we have no resolution.
“How many more holidaymakers need to be stranded or left out of pocket before action is taken?”
Derek Moore, AITO chairman and founder director of Explore, said: “AITO has been saying this for years – the Government needs to protect passengers with proper bonding for everyone.
"How many more airline collapses will it take before they grasp the nettle and provide a level playing field?”
Advantage Travel Centres commercial director Julia Lo Bue-Said said: “Our members have a strong presence in Scotland so will be affected by the Globespan demise, however it is important that they are fully aware of all their options and able to help customers as much as possible.
“We were quick to communicate with members via email as well as liaising with alternative business partners regarding increasing capacity out of Scotland. Information has also been posted on the members’ intranet to keep them informed.”
Advantage said ‘deeds of assignments’ for package holidays are not being accepted by any tour operator and has advised members that if they are rebooking a new holiday the customer will have to pay again and the member will need to collect this payment.
As an individual business a member may take the decision to accept a deed of assignment, but should be aware that this will require them to not only re-book a new holiday but to pay for the rebooked holiday in full with the respective tour operator.
The member will then need to wait for the claim to be processed by the CAA before receiving a refund on the original cost of the holiday, which will take a while.
No tour operator is obliged to honour Globespan’s pricing and therefore where an alternative holiday is sourced their customers will be required to pay the difference, Advantage said.
by Phil Davies
Phil Davies
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