Agents should do more to make unhappy customers aware of the ABTA Arbitration Scheme, according to Gregory Hunt, dispute resolution services manager at the Chartered Institute of Arbitrators (CIArb).
The CIArb operates the scheme which allows customers who have had a bad holiday experience to claim for compensation from ABTA members. The scheme is for holidaymakers who could not resolve their problem in resort and have written twice to try to solve the problem without success.
The scheme processed just over 1800 applications last year of which around 70-80% were successful. However Mr Hunt estimates that at about five times that number went through the small claims court which he points out “is not only a more expensive option, but also takes longer”.
Claims are usually dealt with in less than two months, compared to an average of eight to nine months in the small claims court. The maximum amount claimable is £5,000 per person or £15,000 per group which includes up to £1,000 per person for a minor illness or accident.
Consumer fees range from £72.85 to £164.50 depending on the amount of the claim. According to the CIArb it costs on average nearly three times as much to pursue a claim though the court than through arbitration. Other benefits for the customer include the fact that they do not have to attend court as it relies only on paperwork.
Mr Hunt (pictured) said he believed that many people who were unhappy with their holiday opted for the small claims court because they were simply not aware of the Arbitration Scheme’s existence: “We want people to know that the scheme exists and a lot of people are just not getting the message,” he told TravelMole.
He said that while he understood that it might not be appropriate for agents to bring up the existence of the scheme at the time of booking, they should mention it to any customer who makes a complaint after their holiday.
The CIArb also believes that agents should promote the fact that customers can also now apply online. While the Arbitration Scheme is quicker than the small claim
