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Agents at ‘risk’ without liability insurance
Travel agents are playing a ‘risky game’ if they do not protect themselves with liability insurance.
Although consumers are in the dark about protection levels in light of the dynamic packaging trend the trade needs to cover itself against tragedies such as the deaths in Corfu.
Panellists at TravelMole’s Travel Industry Question Time said it was insensitive for agents to use a terrorism attack, natural disaster or tragedy to make consumers more aware of the protection issue.
But research from Mintel shows only about 10% of consumers feel they are protected when booking with a travel agent.
Hotels4u sales and marketing director John Harding said: “No matter what marketing travel agents do to capture the first time traveller most people are booking a stag or hen weekend or short-break with flights on a low-cost carrier and going direct to the hotel. They are taking that first step abroad without any financial protection.”
Advantage managing director John McEwan said consumers came in to shops to buy a holiday and were clueless about dynamic packaging.
“The customer does not understand it and it’s irrelevant. They have come in to buy a holiday. Almost all our agents are doing some form of dynamic packaging.”
He stressed that although Advantage members must have liability insurance many agents do not realise the consequences of not having it.
Harding added: “They are playing a risky game with the way the market is moving. We have to check all our hotels and it’s an endemic part of the business model.”
Report by Linda Fox
Linda Fox
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