ABTA urges members to support radical changes over customer protection

ABTA chief executive Mark Tanzer has written to members to rally their support for proposed changes over customer protection.

In the letter, he says:

“The Board of Directors is recommending three changes to the Articles of Association which, they believe, will strengthen ABTA’s and ABTA members’ credentials with consumers.

The first is a new provision relating to the responsibility taken by members for money paid by their customers to companies through whom they distribute their travel services.

This year has seen a large number of consumers affected when travel agents have failed and the suppliers of accommodation have refused to accept bookings that they have not been paid for.

This has resulted in very poor press coverage for the industry as a whole and in credit card merchant acquirers requiring additional security from travel companies.

In particular the failure of Freedom Direct was a wake up call for ABTA, credit card companies and the accommodation suppliers with customers left out of pocket and it was clear changes had to be made.

I and my fellow Board members believe that the current situation does not reflect the high standards and values that ABTA members aspire to and are proposing changes to ensure that all ABTA members who sell to consumers through third parties accept responsibility for monies paid.

We are recommending this change to the members as part of a drive to ensure that the value of your ABTA membership is increased.

These are challenging times in the travel industry and it has never been more important that consumers should have confidence in the travel companies they choose. ABTA membership has always been a sign to consumers that they can trust the company they are dealing with, safe in the knowledge that they are getting expert advice and have the security of the ABTA Code of Conduct.

In the last year ABTA has been approached by over 18,000 consumers seeking assistance with travel problems. One of the major benefits of industry self-regulation through ABTA is that the travel industry can respond to novel situations that threaten to undermine that confidence in a prompt and proportionate manner.

ABTA is currently involved in a number of initiatives to underline the benefits that consumers can expect by choosing ABTA travel companies so that the ABTA brand continues to be seen as a mark of quality. Our proposal to extend ATOL protection reinforces our commitment to strengthening our brand in the eyes of customers, providing you, our members, with an invaluable marketing tool and value for money.”

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