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Cosmos warns agents over dynamic packaging
Cosmos has warned agents they are playing a dangerous game by dabbling in tour operators as the company revealed it is facing legal claims worth ?7 million.
Speaking at TravelMole’s latest Travel Industry Question Time on the future of the retailer, director of overseas purchasing Hugh Morgan told agents they could be heading for an expensive fall by dynamically packaging holidays for customers.
The danger, Morgan told delegates, is that retailers are dealing with accommodation providers who themselves are acting as agents – leaving agents to carry the can if something goes wrong.
“There is huge issue of public liability which agents are just not aware of,†said Morgan. “They are picking up bookings but failing to adhere to the rules and regulations.
“If someone on holiday slips over in the shower and makes a claim, it’s the travel agent who will be liable and it’s going over a lot of agent’s heads.
“There are some very good lawyers out there who are making an awful lot of money out of ‘ambulance-chasing’ if I can call it that.
“Just imagine a small independent agent with a high repeat business, putting together a package and an accident takes place The ramifications could be enormous and agents are just now aware of it.â€
Morgan denied he was scaremongering, indicating Cosmos was currently facing claims totalling ?7 million.
He told the debate at ABTA’s headquarters in London that the company even faced a legal bill of ?350,000 in a recent high profile court case despite a ruling in favour of Cosmos.
“Our excess charge alone is ?100,000,†he said.
*More Question Time reports to follow. Also, look out for the next TravelMole Question Time: Pies in the Sky – the Future of Aviation on November 29.
Report by Steve Jones
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