TUI denies hypocrisy over ATOL position

TUI has defended itself against accusations of hypocrisy in its campaign against the inconsistencies of ATOL protection.

The travel giant has been very vocal in its criticism of the current scheme, particularly in light of the court’s decision not to prosecute Travel Republic over alleged breaches of ATOL regulations back in November.

But this week it was brought to TravelMole’s attention that a division of TUI – Holiday Hypermarket – sells dynamic packages which are not bonded.

“Surely this totally contradicts their position on this issue,” said one industry source, who asked not to be named.

When TravelMole questioned TUI on the matter, it said it was down to price.

“The Holiday Hypermarket site operates in the low cost arena and in a very price-led market. As such, as much as we would like to, we are unable to bond dynamic packages sold from this site, as we have to remain competitive," said a spokesman.

“It is our view that all dynamic packages should be bonded and we have been actively encouraging the Government to take steps to ensure that happens.

“All dynamic packages sold on the Thomson and First Choice websites are bonded and we believe this is the right course of action as those brands are known for having financially protected packages and it may be confusing for customers if we also sell, on the same website, combinations that are not bonded packages.

“We would welcome legislation that ensures a level playing field and demands bonding for all dynamic packages, but until such time as that happens we will continue to differentiate our products to suit the markets in which they are operating.”

Industry sources pointed to comments made by TUI back in November when the Travel Republic case was dropped.

At that time, TravelMole reported Christian Cull, communications director for Thomson and First Choice Holidays, saying: “Travel Republic insist they don’t sell packages, but if something looks like a duck, waddles like a duck and quacks like a duck, then it’s a duck.”

On Friday, TUI announced that from next month Thomson Airways charter flight-only product will now be sold by directly and will therefore no longer be subject to the ATOL regulations.

It said the decision had been made because the current regulatory scheme is not consistent across the industry, with certain airlines not required to pay the current levy.

By Bev Fearis