HMRC ‘caused bed bank’s failure’ Ian Taylor


A trade accommodation provider which ceased trading in 2011 owing more £6.3 million was pushed into insolvency by a VAT demand from HM Revenue & Customs (HMRC) and would not otherwise have failed. That is according to leading


industry accountant Chris Photi, head of travel and leisure at White Hart Associates, who said the company “would not have failed if that money had not been taken”. Bed bank HotelConnect was


wound up in July 2011 after paying up to £1.8 million to settle a demand for VAT under the Tour Operators’ Margin Scheme (Toms). This


followed a tribunal ruling in 2010 which found another bed bank, Secret Hotels (formerly Medhotels), liable for £7 million in VAT on the grounds it operated as a principal (or supplier) and not an agent. HMRC sought Toms VAT from


other bed banks even as the Secret Hotels case progressed through the courts – the ruling being reversed by an Upper Tribunal (High Court), confirmed by the Court of Appeal and finally overturned by the Supreme Court in 2014. However, HMRC continued to


hold VAT from bed banks while it considered an appeal to the European Court of Justice and disputed the applicability of the Supreme Court ruling to other cases. Only in 2020 did


Specialists call for more training and accessible product


Juliet Dennis


Accessible travel specialists have repeated pleas for more suitable product for disabled clients as well as training as they continue to battle against the slow pace of change. Operators and travel agents cited


continued difficulties in booking accessible hotel rooms and said lack of availability remained a major issue. Enable Holidays chief executive


Ben Kirby said: “We could book hundreds more people but there are not enough accessible rooms to match demand, especially in peak season.” Amar Latif, founder of Traveleyes,


4 12 JUNE 2025


called for hotels to use voice technology in lifts and rooms. “Why can’t all lifts announce


what floor they’re on? An Alexa (or similar) in a hotel room would make things like finding light switches so much easier for blind or vision-impaired travellers,” he said. Hotel, cruise line, airline and


agency websites were also criticised for lacking information about accessible products or services. Jon Fletcher, founder of The


Wheelie Good Travel Company, said: “I’ve been into ‘accessible’ hotel rooms where I’ve not been able to turn around in a wheelchair unless I’ve moved all the furniture into one


HotelConnect was not seriously in the red – it would not have failed if that money had not been taken


HMRC confirm it would not appeal. It still took until this year for


HotelConnect liquidator Antony Batty to negotiate a rebate from HMRC, enabling a payout to unsecured creditors, including trade partners. Those who have submitted claims


can expect a dividend of 50p in £1, which is unusually high, after HMRC repaid £1.2 million.


Photi described the dividend


as “unheard of in a travel failure” and said: “This company was not seriously in the red. It would not have failed if that money had not been taken. The company would almost certainly have had the money to continue to operate.” HotelConnect ceased trading


with 6,000 bookings through trade partners and 400 with consumers. However, the liquidator has only received claims worth £2.3 million from 215 creditors. Dividends will only be paid to those who submit claims by the deadline of June 23. Businesses which may have a


claim should contact Antony Batty at antonybatty.com. The cost of the liquidation is put at £700,000.


Voice technnology could help visually impaired travellers


corner. Suppliers need to get their act together on that, [albeit] some are doing brilliantly.” Latif said 95% of airline websites


were not accessible to visually impaired passengers, while agencies could also do better with screen readers and alternative text, known as alt text, which describes website images. InteleTravel agent Caroline


Harris called on hotels to ensure staff were properly trained to support neurodiverse children. “I have clients who would spend anything on their family holiday if they thought their children with additional needs would be catered for,” she said. Richard Thompson, founder of


Inclu, a luxury hospitality and travel group for disabled travellers, agreed: “Let’s get beyond the wheelchair. Can your hotel provide access for an autistic child at its children’s club?” He added: “There are probably


three hotels in the Caribbean that provide access support to swimming pools, the cost of which is less than a coffee machine in the bar.” He said little had changed in 25


years, branding the lack of suitable product worldwide for disabled clients “commercially insane”. Operators said training was


still needed, with Kirby noting a particular knowledge gap around hidden disabilities.


travelweekly.co.uk


PICTURE: Shutterstock/APChanel


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52