‘APC could go up to £10 or more’ Samantha Mayling


Elite Travel Group Conference, Paphos


The price of protecting flight- inclusive holidays could rise from £2.50 to more than £10 as a result of Thomas Cook’s failure, a leading Atol expert has warned. Alan Bowen said the CAA’s


Air Travel Trust Fund had to be replenished after the collapse of the UK’s third-biggest Atol-holder. CAA chair Dame Deirdre Hutton


has previously estimated the cost of repatriation and refunds for Thomas Cook customers at £480 million. She said this would “clean out the trust” but had “no intention” of


raising the £2.50 Atol Protection Contribution (APC). But Bowen, legal advisor to the


Association of Atol Companies, said APC could rise to “£5 or £10 or more” after 2020. Addressing members of the


Elite Travel Group last week, he said taxpayers paid £40 million to repatriate holidaymakers who were not covered by the Atol scheme. “The system is great for


consumers, but not for the rest of us,” Bowen said. “Not a single [Cook customer] was asked for the Atol Certificate, so why pay £2.50?” He said any reforms to airline


insolvency would be delayed, with the general election and Brexit


Not a single


[Thomas Cook customer] was asked for the Atol Certificate, so why pay £2.50?


dominating the government’s agenda. JTA Travel Group managing


director Wayne Darrock, whose business lost £400,000 due to the Cook collapse, said: “The cupboard is bare; will it be replenished? Can we say we are fully protected?” He called for clarity around the


“unregulated mess” of protection, and warned of rising costs from insurance


companies and credit card firms. “The consumer is protected, but


we need to protect the industry,” Darrock said. Elite general manager John Escott


said members had not been badly hit because they had been selling fewer Thomas Cook holidays over the past year, but added: “We face a perfect storm: a Brexit date in the peaks and a general election. But the high-end market is still booking.” Simon Bunce, director of legal


affairs at Abta, said future agency agreements were likely to change with regards to balance payments, credit terms and access to customer


contact details. i Elite Travel Group Conference, page 16


Avalon targets agents hit by Viking rate cuts


Harry Kemble


Avalon Waterways plans to increase commission in a bid to appeal to agents who have been left out in the cold by rival river line Viking Cruises. Last month, at least three leading


cruise agencies said they had had their commission slashed and a further two said they had been cut off commercially by the operator. In response, Avalon chief Giles


Hawke tweeted: “[Avalon Waterways] 4 5 DECEMBER 2019


would be delighted to work with affected agents. [We have a] great trade sales team, strong commissions, fantastic product and unswerving support for agent partners.” Hawke later told Travel Weekly:


“Every cruise line and tour operator chooses to do what makes sense for them. We will do what we need for our business, and that is working with travel agents. “We are talking to agents about


commission levels and making sure they are hugely competitive. We’re


Avalon Artistry II and, inset, Giles Hawke


looking to up our commission on our cruise product.” Avalon’s trade sales account for


55% of sales, up from 45% in 2016. Hawke praised Viking for raising


awareness of river cruise among customers through its advertising, such as in national newspapers, but added: “I think our level of quality is above the Viking offering.” He said agents “have a lot of


alternative” river cruise lines to sell. Other lines stressed the importance of the trade in driving sales.


Jamie Loizou, AmaWaterways


sales, marketing and digital director, said: “AmaWaterways has grown significantly over the last three years and the trade is absolutely integral to that. I have regularly seen cruise lines cutting commission and then coming back to the trade. That is not a sustainable way of working.” A-Rosa’s UK boss, Lucia Rowe,


said the trade was of “paramount importance” to the line’s growth plans. Viking said it reviews all


partnerships “on a regular basis”. travelweekly.co.uk


PICTURES: Phil Gammon; Lighthouse Productions/Dirk Verwoerd


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