p2 May15 13/5/09 21:43 Page 2
Consumers have right
to be bitter as payout
news
buck is passed around
THE COLLAPSE of XL was big enough but, as Chris
Photi says this week, the failure of Freedom Direct
could have much farther-reaching implications for
the industry and its already tarnished reputation.
The Freedom case has highlighted once again the
desperate lack of clarity and consistency in how the
industry sells travel products, not to mention the
farce that is consumer protection. And this time,
this week
some real gremlins are emerging from the confusion.
Is it any wonder that consumers who bought
holidays from a website with Atol plastered all over
it are now furious to find that the majority are
apparently not protected by the CAA?
They are bandying accusations around like
“cowboys” and “gangsters” – and who can blame
them for feeling angry and mystified?
The Co-operative Travel takes pride
And if you think consumers are angry, you should Carol Vorderman and Mike Greenacre, managing director of The Co-operative
speak to the credit card companies to which it seems Travel, launch the Pride of Britain Awards 2009 this week at the Co-op’s
up to three-quarters of claims are being directed. Corporation Street branch in Manchester. The company is the ceremony’s sole
They thought they had minimal risk to an “agent” sponsor for the second year running, and branches will be asking customers
like Freedom Direct. Now they look set to be stung to nominate people they think deserve recognition in the awards, to be shown
for huge sums. on ITV1 in October. The Co-operative Travel posts £12m profit, p14
Word has it that some credit card companies are
threatening to not only bring in less favourable Freedom fallout. Holiday sales.
terms in light of this mess, but even to withdraw Defence aid for Republic? p4 Spring revival for OHG p9
from working with the travel industry altogether. Can Could guidance issued by the CAA On Holiday Group says trading is
you imagine the problems that would cause? on Atol refunds for customers of “on a par” with last year, with
No wonder consumers feel bitter. Rather than failed retailer Freedom Direct be March trading “pulling things back”
being welcomed by a consumer protection organi- used to defend Travel Republic
sation happy to reimburse their holiday monies (and against claims it broke package In-depth.
restore faith in our industry), they appear to be holiday selling rules? Flying to be greener p10
being met by a wall of regulators, insurers and trade Technological advances will do
bodies that seem bent on doing their damnedest Swine flu. more to cut aviation’s carbon
to pass the buck to someone else. US sales fall by a third p5 emissions than efforts to get
Is our shambles of a consumer protection UK summer bookings to the US customers to fly less
regime really going to be solved by tweak- dropped by nearly a third in the
ing APC from £1 to £3, or should it not be week after the swine flu outbreak Cruise.
completely revamped? The government in Mexico, new figures from Scenic adds space ships p20
needs to decide whether it truly wants to GfK Ascent-MI have revealed River cruise operator Scenic Tours
offer consumer protection, and apply is about to double its capacity by
it across the board to airlines, com- GTMC conference. adding two more “space ships”
ponent providers and operators. Iata threat to TMCs p6
A modest levy against every Travel management companies Business travel.
aspect of the overseas holiday could be forced out of business if No revival until autumn p24
industry, regulated by one body Iata insists airline bookings be paid Downturn to continue until fourth
with a clear and specified stamp or every two weeks quarter, says Bath Travel’s Adam
logo, with a stated cost of levy White
at the bottom of each invoice – Search trends.
surely this would do the trick? Luxury ‘must use web’ p7 SECTORS.
Travel firms that specialise in Cruise p20
high-value face-to-face sales must Business travel p24
Lucy Huxley Editor still harness the internet to attract Hotels & resorts p26
potential bookers Letters p30
02 15.05.2009
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