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ABTA clampdown on suppliers over payments
Sunday, 05 Oct, 2009
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ABTA has passed a resolution to strengthen its articles of association to ensure suppliers honour payments collected by agents on their behalf if retailers fail.
The change means that all ABTA members, including bedbanks, will expect to honour bookings made by a failed agent, even if they have not received the cash.
It follows the failure of retailers such as Freedom Direct, which left large numbers of customers exposed.
An ABTA spokeswoman said: “There were situations where agents were selling bed banks and the agent failed but the bed banks wouldn’t honour the booking. The bed banks are suppliers but in those cases they were claiming they were agents.”
ABTA chief executive Mark Tanzer added: “I am pleased to see that the membership has re-affirmed its commitment to the principle of financial protection, and the obligations that ABTA members have to customers. In a fast changing commercial environment, it is important that customers continue to have confidence in booking with ABTA members.”
The changes needed approval by 75% of those voting and 82% of the 200 votes cast at ABTA’s extraordinary general meeting were in favour of strengthening the articles.
Hotels4U and Medhotels, both part of Thomas Cook, had threatened to pull out of the association if the resolution was passed.
The ABTA spokeswoman said: “Anyone pulling out would not be desirable, but the board felt strongly that recent failures had brought ABTA into disrepute and the change was needed.”
*See Guest Comment for reaction from leading bedbank youtravel.com.
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