p12-13 News mar6 4/3/09 19:48 Page 12
news challenge to abta
ttglive.com
Abta dismisses rival membership proposals by Advantage and
Worldchoice as political jockeying by the two consortia, and
stresses the merits of its full offering. Lee Hayhurst reports
Abta fights back
over rival threat
WORLDCHOICE and Advantage have reported Tanzer denied claims that the Abta name was
high levels of interest in their “alternative to not as prized as it once was, saying research had
Abta” membership schemes, prompting Abta to found one of the main benefits of Abta member-
fight its corner (TTG February 27). ship was consumer confidence in the brand.
The two consortia have both started touting Abta said new-member approvals increased
what they claim are cheaper options to by 51% between July and December last year. Of
Abta membership for existing members and 44 new members, 20 were travel agents.
prospective new members. The association put this down to consumers Abta bosses Mark Tanzer (left) and Andy Cooper in discussion at the new so
But Abta chief executive Mark Tanzer said he being more aware of booking with reputable
had yet to see proof that what they were offering companies in the wake of the XL Leisure Group
was better value than Abta, given the whole collapse in September.
Worldchoice:
range of services it offered. Tanzer said: “What I have heard anecdotally
And he claimed the emergence of rival following the collapse of XL is that people are
alternative schemes was more about political asking if a holiday is protected by Abta or Atol.
25 agents keen
in-fighting between consortia which had their “It’s easy [for the consortia] to put out a
own commercial priorities. headline figure to say this will cost £250 less, but WORLDCHOICE claimed 25 agents have
“They [the consortia] have not been very clear what are you getting for that? requested application forms for its “Abta
about what it is agents are looking to change and “I’m not complacent; it’s very tough out there alternative” – including some non-members.
if they are looking for an alternative to Abta,” and we are conscious of trying to keep costs The consortium, which claimed its scheme
Tanzer added. to an absolute minimum. We think we are as would save agents at least £250 a year, said it
“I would be very interested to see if they can low-cost as we can be.” acted after a recent survey found a “staggering”
do bonding cheaper than Abta; I think they will Tanzer said Abta would study the alternatives level of disaffection with Abta.
struggle in this particular market to get anything being offered by Worldchoice and Advantage and Some Worldchoice agents were hit particu-
more cost-effective. This is as much to do with strive to make sure it remained competitive. larly hard last year when the cost of Abta
the politics between consortia as it is Abta. But he warned agents thinking of switching to subscriptions went up by as much as 30%.
“They are trying to win members. This is the “think carefully about what they are being of- Simon Hargreaves, managing director of
commercial pressure they are under.” fered and the full range of services Abta offers”. Worldchoice, said the scheme did not need
many agents to switch to make it viable, but he
was prepared for it to fail.
Advantage: We’ve
able interest from members within Advantage.” “It could be a challenge that dies,” he
It said the consortium was getting “feedback” admitted. “Some innovations don’t succeed.
had lot of interest
about “costly and onerous Abta membership” “But things have started happening – and not
that was “prohibitive” for agents and put just from Worldchoice agents but from other
“limitations” on suppliers. parts of the industry.
ALTHOUGH Advantage has insisted its scheme is The letter said Advantage operators would re- “The acid test for Mark Tanzer is whether
aimed at prospective new members who do not ceive 85% of payout claims and the scheme members feel Abta is value for money.
meet Abta requirements, it said it had received applied only to “preferred business partners”. “If the result of this is that members feel Abta
“considerable interest” from existing members. It stated the scheme would provide protection is value for money, that’s fine.”
The claim was made in a letter sent to “in the event that a member migrates away from The consortium said it will initially offer
suppliers about the “soft launch” of the Abta membership”. However, Advantage bosses customers and agents identical cover as Abta.
Advantage Protected Bonding Scheme, requiring have since contacted Abta claiming the letter had
them to sign up to it by today (March 6). been “interpreted” as an alternative to Abta but ■ More details of the “alternative to Abta”
The letter stated: “We have received consider- that this was “not the case”. schemes at ttglive.com/abtachallenge
12 06.03.2009
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