p12 news mar5 3/3/10 18:23 Page 12
news abta north-west regional meeting
ttglive.com
Changes to protection for dynamic packaging would be good
EXTRAS.
news for agents and customers, but members still struggle
Pole dancing tip
with new insurance rules. By Dave Richardson in Manchester
for pulling power
Abta steps up its
AGENTS were urged to advertise activities such
as pole-dancing lessons in their shop windows
to increase sales of add-on experiences and
protection push
attraction tickets. Pole dancing, aimed at hen
parties, was used by one independent chain to
promote add-ons.
It is among other commissionable deals from
Attraction World, including power boating, Indian
ABTA’s plans to get dynamic Agents would collect the Atol cookery and the “Ultimate DJ Experience”.
packaging included in consumer Protection Contribution (cur- National sales manager Nick Hughes said:
protection were welcomed by rently £2.50) but avoid liability “The Co-operative Travel put ads in windows for
agents, who described it as a for health and safety and pole-dancing lessons. It didn’t sell any, but the
vital part of their business. VAT under the Tour Operators ads got people through the door.”
Many have turned to DIY Margin Scheme. The multiples were much better at selling
packaging to fight online He said that he was hopeful add-ons than independents, he added. They had
discounting by large operators airlines would provide con- increased sales last year, while sales through the
which, the meeting heard, sumer protection in the longer consortia were 20-30% down.
sometimes reached over 10% term, but that would require “Multiples are outselling independents by 15
of the holiday cost, with Tui and EC legislation. Abta is lobbying to one. With fewer customers, agents need
Thomas Cook fighting each Brussels for changes to the to make more profit from those
other. Package Travel Regulations, but who come through the door,”
Franco Renzulli from Top changes to the CAA’s Atol said Hughes.
Class Travel said: “This is why system are more likely to yield Although Florida attraction tick-
dynamic packaging has come in. We don’t have a short-term results. ets represent 75% of Attraction World’s
choice if we’re going to compete.” Bringing dynamically packaged holidays sales, other products are growing
Abta is finalising a submission to the CAA, into the Atol system would mean at least 80% rapidly, including those in UK and
urging it to extend consumer protection by Atol of holidays were protected, compared with European cities.
to all dynamically packaged holidays. 35% today.
Abta chairman John McEwan (pictured) “This will have a fundamental impact on the
said the association hoped to achieve a “halfway travel industry. It will enable us to go out and sell
house”, to include holidays put together by agents, with more confidence,” McEwan said.
and “click-throughs” from airline websites to “We are trying to get to a point where agents
In brief
accommodation and extras. This would not mean either sell products that are fully protected, or
agents becoming tour operators, he added. protect dynamic packaging.” ■ Fifth of Flyglobespan bookings covered by Atol
Only about 20,000 of collapsed airline Flyglobe-
REGULATION.
span’s 100,000 bookings were protected by an
‘Lobby the FSA for a better deal’
Atol, said John McEwan. But many agents had
offered protection through Scheduled Airline
Failure Insurance.
SOME agents have given up selling travel manager, said: “Insurance sales are going down
insurance since the FSA tightened up regulation for agents, and a lot are paying fees of over £500. ■ Trainee academy to boost industry entrants
in January last year, Abta members were told. “We either do not charge any fees, or will Abta hopes to set up a National Training
Others are now acting as appointed represen- charge £200 to appoint you, which you can soon Academy for young people hoping to enter the
tatives of an insurance company, or are paying earn back as you build up sales.” travel industry. The academy will work with
over £500 a year to a company called ITC Compli- He called on Abta and the travel insurance schools to guide possible entrants to the industry.
ance so that they can sell insurance by more industry to lobby the FSA for a better deal.
than one provider. The meeting was warned that some customers ■ Come dine with us, and a few others, says Abta
Jon Cunningham, owner of Key Holidays, said were going abroad without insurance, as agents Abta is planning to organise a series of dinners
agents had to go through a lot of paperwork with cannot even offer any advice unless they are around the country involving members, MPs,
ITC, and with market conditions being tough, appointed by an insurance company or regulated airports and other travel industry players. One
they could not get a return on their investment. by the FSA or ITC Compliance. is scheduled for Manchester on May 20.
He added: “Insurance is lose-lose at the Ariel Travel senior partner Jim Tadgell said: “I
moment. Many customers now have their own.” was happy to recommend an operator’s insurance
ttglive.com
For the latest news, reviews and comment
Ken Palmer, Fogg Travel Insurance general for activity holidays, but now I’m not allowed to.” from the travel industry, visit ttglive.com
12 05.03.2010
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