P4 news Sept11 9/9/09 21:33 Page 4
news
11.09.2009
Bed banks slam
Website denies
Abta proposal
false pricing
ONLINE travel agent On The Beach has
rejected accusations that it knowingly displayed
false prices on its website to lure customers.
Chris Gray.
that members’ cash flow would be hit TTG was contacted by south-London agent
BED BANKS have warned they could
C
O
if they voted the proposal through at Tracy Lock, who said she made several attempts
demand agents pass on customers’
STO
VER
the meeting on October 2. to book a personal holiday on the website.
money as soon as it is paid, if Abta
R
Y
Bed banks have traditionally She said she was drawn by On The Beach’s dis-
members vote to make them take allowed agents to keep customers’ counted prices but after attempting to book was
responsibility for pipeline cash as a money for much longer than informed she must wait 48 hours for confirma-
condition of being in the association. traditional tour operators as a way to tion, after which time she was told the holiday
Abta is asking members to vote next month on encourage agents to use them. was no longer available at the discounted price.
proposals to change its articles of association so Youtravel director Paul Riches said Abta bed “You’re advised to contact the call centre
that all members will be responsible for money banks might have to change that model if they where they try and sell you the same holiday at
paid by customers to companies that distribute were forced to take responsibility for the money the price before it was discounted. I tried to book
their products. if the agent went bust – and if non-Abta bed different types of holidays on different occasions
The change aims to force Abta bed banks banks were able to give members better trading but the same thing kept happening,” she said.
to honour bookings made with an agent that terms than Abta bed banks, it could force some On The Beach’s commercial director, Johnny
goes bust: in the Freedom Direct case, many bed to review membership of the association. Pollard, said: “We try at all times to keep all
banks refused to honour the bookings. On Holiday Group chief executive Steve supplier information on our website up to date
Abta believes the change will improve cus- Endacott said: “What it but rely heavily on third parties to achieve this.
tomer protection and help members because means is that bed banks “The number of products we offer makes
credit card providers will see agents as less risky will demand the money it impossible for us to check that all prices
so will stop demanding large cash securities. as soon as it is paid to are correct.”
Chief executive Mark Tanzer (pictured) said the agent, putting them He said the company apologised for any
the Freedom Direct failure had been a “wake-up in line with the major difficulty that Lock may have experienced.
call” for Abta, credit card companies and bed tour operators.
banks themselves, and there was agreement “Surely it would
changes had to be made quickly. be better to have
“Abta members operate a range of business an insurance
Deadline for XL
models, and we are happy to let these flourish,” policy taken
he said. “But the principle that an Abta member out by Abta claims runs out
is responsible for money taken through an agent, and paid for
or sub-agent, applies to all.” by their THE CAA has dealt with 85% of claims arising
But Abta and non-Abta bed banks warned members.” from the collapse of XL Leisure Group and is
refusing to accept any more from today, as it is a
year tomorrow since the company went to the wall.
Abta is proposing two other changes to its Tanzer said the change was a “tidying up” David Moseli, deputy director of consumer
articles of association at its general meeting on exercise thought necessary because of the growth protection, said about 9,500 claims remained to
October 2. of controversial “pre-pack” administration deals, be dealt with out of about 65,000 received.
The first is to change the way Abta considers whereby a company fails and the director often Most of the 9,500 had not been dealt with
whether to grant applications if the applicant has appears shortly afterwards as part of a pre-pack. because they were missing information, he said.
been a director of a failed company. The proposal The second proposed change is to extend a rule Meanwhile the Department for Transport’s
is to change the rules so that an applicant will be that now bans applicants from using the company consultation on reforming the Atol system, which
considered to have been a director even if they names of a failed Abta member to include using has been pushed to breaking point by the XL
left the firm up to six months before it went bust. the name of any travel company. collapse, is due to start in November, when the
DfT is expected to release the consultation paper.
04 11.09.2009
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