Convention special: Book on a credit card, Pirie says
The travel industry has an unhealthy obsession with traditional protection schemes when simply booking on a credit card would safeguard customers’ money, said Travel Republic managing director Kane Pirie.
Speaking in a question and answer session at the Travel Convention with moderator Bill Turnbull, he advised people to buy their holidays on plastic.
“We have an unhealthy obsession with air travel organiser’s licence (ATOL) protection,” said Pirie.
“There’s an endless debate but meanwhile in the background, the banks have put in place a system that is robust.
“The best advice for booking travel arrangements is to do it on a credit card. It’s more reliable than the ATOL system.”
When someone from the audience pointed out that sometimes the cost to the consumer of paying by credit card is more than the cost of buying insurance to protect against a company failure, Pirie said visa debit cards, which don’t generally incur a fee, also offered financial protection.
However, according to the government consumer website directgov and the Air Transport Users Council, only card transactions worth £100 or more are protected under the Consumer Credit Act.
In a well-documented case, the Civil Aviation Authority prosecuted both Travel Republic and Kane Pirie over breach of ATOL regulations and lost.
Pirie told Turnbull that the personal prosecution had taken a heavy toll on him.
“It put a lot of pressure on me and my wife, who didn’t really understand what it was about,” he said.
However, he argued that Travel Republic customers were well protected by its own scheme.
“We put in place a scheme two years ago which also covers scheduled flights. When Globespan went down we refunded all customers within a month,” he said.
As the discussion with Turnbull changed tack, Pirie criticised the media for focusing on negative aspects of the travel industry and predicted that the massive travel industry consolidation of recent years would continue.
“On the distribution side, there will be a smaller number of larger players on a global basis.”
By Jeremy Skidmore
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