Agents call for later balance due dates


Juliet Dennis


Agents are ratcheting up pressure on suppliers to be more flexible on final booking payment dates, with balances for the start of the peak summer season now due. The issue threatens to be one of


the biggest challenges agents face in the coming weeks. Balances are generally required by


operators eight to 12 weeks prior to departure, with payments currently sought for breaks in the first week of the school holidays. Agents are calling for balance due


dates to be pushed closer to departure. The Advantage Travel Partnership


leisure director Kelly Cookes said: “We are getting increasingly worried.” The consortium is seeking


flexibility from suppliers because of the extra paperwork involved in processing a refund if a holiday is cancelled, and to limit further damage to consumer confidence. Cookes said a grace period of two


weeks could make “all the difference”. The Travel Network Group is


challenging suppliers to change payment terms. Membership services director Stephanie Slark said: “Along with refunds, this is the biggest challenge facing frontline staff. As we


get towards the summer peak, affected booking numbers are increasing.” Barrhead Travel president


Jacqueline Dobson said: “Flexibility is the main concern on holidaymakers’ minds right now.” Peter Cookson, managing director


of Spear Travels, called for “realistic” due dates of three weeks before departure, but said: “If the flights haven’t been cancelled by the airline, it is a problem for the operator.” Some suppliers have altered book-


ing conditions but bigger operators’ terms remain largely unchanged. Jet2holidays requests balances 10


weeks before departure. But trade sales general manager Craig Davidson said: “We have a range of flexible options to help agents save bookings.” Tui offers a balance due date


of four weeks before departure for holidays booked after March 16 but requires balance payments at 12 weeks for all other holidays. Olympic Holidays offers the


chance to part-pay for departures up to August 15. Balkan Holidays asks for balances four weeks ahead rather than its previous 10. Red Sea Holidays has reduced due dates to two weeks out for June and July and four weeks for August and September, instead of 12 weeks.


Regulators rela Ian Taylor


Consumer protection authorities won’t strictly enforce refund rules on the travel sector despite the government’s failure to clarify the status of Refund Credit Notes for cancelled holidays. The Competition and Markets


Authority (CMA), the principal enforcer of consumer protection, has confirmed an investigation of businesses failing to respect refund rights, announced last week, will not take in package travel. And Trading Standards, which


position but industry leaders insist the CAA stands behind Refund Credit Notes, which remain Atol-protected. Abta chief executive Mark Tanzer


STORY TOP


expressed hope the CAA would confirm the insolvency protection of Refund Credit Notes for Atol bookings, as Abta has already done, saying. “I don’t think there is a structural impediment to the CAA doing that.” Speaking on a Travel


Weekly webcast, he said: “Our reading of the Air


Travel Trust payment policy makes clear deferred refunds


Agents fear


losing bookings if balance due dates aren’t shortened


4 7 MAY 2020


has responsibility for enforcing the Package Travel Regulations (PTRs), has issued guidance noting: “Traditional legal remedies and enforcement are likely to be inappropriate at this time.” As a consequence, the Chartered Trading Standards Institute (CTSI) has advised it “wants all credit notes financially protected”. The CAA, which enforces the Atol rules, has yet to clarify its


against Atol bookings are payable if the company fails. We want the CAA to come out and say that clearly and unambiguously. That would help everybody. I’m hopeful they will.” A senior industry source said the


CAA had not clarified its position because it “did not want to be seen as condoning not refunding within 14 days” without a statement from the government. This continues to be held up by the Department for Business. However, the source said: “Abta came up with Refund Credit Notes


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