Bed bank abandons principal status
Youhotels.com has today confirmed it is to abandon its principle status early next year, when it will switch to agency status.
It said that the move would bring it into line with the majority of UK bed banks and reflected the changing attitudes to principal status within the industry.
UK managing director Matt Cheevers said: “Youhotels.com is one of the last remaining accommodation-only suppliers to operate as a principal and it no longer makes business sense to continue to do so.
"We can’t continue to offer our clients fantastic prices if we have to absorb the costs associated with principal status."
Acting as a principal meant that Youhotels was treated for tax purposes as a tour operator and forced to pay VAT under the Tour Operators Margin Scheme.
Cheevers said the decision to ditch principal status followed a three-month review of the Youhotels.com portfolio to focus more on quality rather than quantity.
Youhotels.com will still hold principal status for all bookings made prior to the switchover.
By Linsey McNeill
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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