Protection fiasco Q&A
TravelMole put some questions to AITO spokeswoman Sue Ockwell in light of yesterday’s revelations of the protection loophole. Here’s what she had to say:
Q. What advice has AITO given to its 23 members with such policies?
A. AITO is asking these members to look at alternative methods of financial protection. In the meantime AITO lawyers are writing to the insurers of those members asking them if they will guarantee that they will always honour refunds to clients should the AITO member in question fail. If an insurer so guarantees then members can continue to offer financial protection in this way.
Q. Does this have implications for other tour operators – ie non AITO members?

A. Yes. We have no idea how many companies have per person tour operator failure policies but there must be many hundreds out there.
Q. Why has this loophole not come to light before?
A. We believe that there have been instances before but AITO has not come across them. This case is, in a way, a perfect storm scenario – economic crisis, the withdrawal of credit by banks, big group bookings and children involved.

Q. What is AITO going to do next?
A. AITO is trying to assess the size of the problem which is difficult because the company in question is no longer an AITO member. We are liaising with police and trading standards. AITO will continue to talk to BIS and other Government departments. We believe very strongly that Government action is required to sort this out. This is not something a trade association can do alone. We’ve been shocked that it is apparently bad drafting of the PTRs that have brought this problem about.
Q. What would need to change for AITO to bring back its 100% financial guarantee?
A. Either all members need to be bonded or insurance companies have to offer guarantees that they will not renege on the cover that has been bought on consumers’ behalf.
Q. What are the implications for AITO members who are covered in other ways (ie not relying on this kind of insurance)?
A. Members continue to offer their own financial guarantees.
Q. How are AITO and its members making customers aware of this change? And do you think customers will understand it?
A. Members with insurance cover are having to over-sticker their brochures, change their websites, brief their staff and AITO is having to change its quality charter and website. We doubt that customers will understand this as it is so complex. We doubt many in the travel industry will understand let alone their customers. This is something the travel industry has to sort out with Government and insurance providers.
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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