ABTA 2012: Tanzer says he’ll be sorry to lose online travel agents

ABTA chief executive Mark Tanzer has acknowledged that he may lose his battle to keep the large online travel agents within the Association after repeated threats by the likes of On Holiday Group and the lowcosttravel group to quit.

Speaking from Turkey where ABTA is holding its annual convention, Tanzer said he would be "very sorry" to see the OTAs leave.

"They are a very important part of what ABTA will be like in the future – this is why we appointed Kane Pirie of Travel Republic to the Board – and I don’t think it will be in anyone’s interest for them to leave, we have a lot of common issues, but I am not complacent about the situation," he said.

Responding to On Holiday Group’s chief executive Steve Endacott’s recent public criticism of ABTA, in particular its stance on proposed reforms to the European Package Travel Directive, Tanzer said it was working hard to ensure that the changes would not harm travel agents.

Endacott claimed that by switching the onus of financial protection for the consumer from tour operators to travel agents, the reforms will make it hard for them to compete.

In a blogpost this week, Endacott said ABTA was allowing its tour operator members to dictate its position on PTD.

The impact of the new European Directive is due to be debated at the Travel Convention at a session on Thursday afternoon when Endacott will be one of four speakers.

Also speaking will be ABTA head of legal and member services Simon Bunce alongside Thomas Cook Group director of government and external affairs Andy Cooper and Chris Photi, senior partner at Whitehart Associates.

Tanzer said agents needed to be realistic about how much ABTA could do to limit the reforms. "There’s no point us saying to the European Commission that we want to throw out the PTD, that’s not going to happen. The European Parliament is pro-consumer and it wants to extend PTD, not shrink it.

"But we realise that since we consulted with agents on the reforms back in 2009/10 ,when they said they wanted dynamic packages included in the Directive, some of them have changed their minds; some are telling us that times have moved on, that had they understood the implications of the reforms they would have responded differently to the consultation.

"We are not saying it’s too late now, we are waiting to see what the EU is proposing and then we will be consulting with our members again."

The proposed reforms are likely to be published in December or January and Tanzer admitted they might be better for operators than agents but he denied that ABTA was unable to act in the interests of both, as some critics have claimed.

"I know some agents are not happy but I don’t believe it’s a systemic problem, however if some are unhappy that is a concern.  You have to ask what you can do and if agents have changed their minds (about PTD reforms), we will be talking to them."

Some of the harshest criticism of ABTA in recent weeks has come from Travel Counsellors’ chairman, David Speakman, who is no longer an ABTA member. He claimed in a press release on Monday that ABTA had been hijacked by the FTO (Federation of Tour Operators) and was more pro-operator than pro-agent.

He later added: "If Mark Tanzer honestly believes that an agent agenda would include "holiday sales by airlines" and "click-throughs" he is even more disconnected to the needs of agents than I first thought. Both these issues are clearly on the operator agenda to create what they believe is a "level playing field".

 "Agents want to be able to sell every airline and every hotel at the behest of the customer. They want to financially protect the customer but not to be responsible for a customer slipping on a wet floor at a hotel that the customer has chosen.

"Any such legislation would eventually limit choice for the customer and consequently force customers to buy ATOL packages. Similarly it beggars belief that agents are now financially responsible for the viability of airlines when the airlines themselves are not responsible for financial protection of the customer.

"It is important that the vested interests within ABTA do not seize the wrong agenda that will inhibit choice and competition for both its agent members and its customers."

"ABTA hasn’t been hijacked," said Tanzer, "but yes, the FTD will impact agents differently to tour operators. The genius of ABTA is that it creates a place where these issues can be debated and different views can be heard.

"Some agents didn’t want Flight Plus but the Government was going to introduce regulation that would have made agents principles and ABTA fought for agents to continue as they were. Now I know some agents are frustrated with Flight Plus, but now it’s here they are not saying it sucks."

Asked whether ABTA had a long-term future without the OTAs, Tanzer said emphatically yes. "I think ABTA is indispensable, if it didn’t exist someone would invent it. You have to have a body to lobby on behalf of members, with lawyers and other specialists, so agents can stick to selling holidays."

Where do you stand on the ABTA debate? Can it represent all members? Post your comment below.