NEWS
Tanzer: Balance dates are not for Abta to set
Ian Taylor ate-backed loans’ A “It’s a huge frustration that government decisions,
such as banning all international travel indefinitely, have significantly impacted our revenues and stopped people from booking. The government needs to introduce guaranteed lending until such time as the international travel ban is reversed.” A guaranteed loan is one underwritten by a third party,
such as the government, should the borrower default. He said the industry needed to unite to get the
government’s ear. “We are an important industry. No one is representing the agent,” he added. Other agents agreed the role of travel agencies had
not been recognised by government. Jill Waite, whose agency Pole Travel saw revenues fall
from £250,000 to £1,700 for the month of April, said: “I don’t think anyone in government has realised what we are doing and what a massive job it is to refund and repatriate people and the paperwork involved.” Westoe Travel director Graeme Brett said the
financial hit on agents as a result of monies not recouped in the rebooking process had not been talked about. “It’s going to take us two years to recover from this,” he said.
bta has no plans to issue guidance on balance-due dates for payments despite agents seeking more flexibility from suppliers as balances
on summer bookings fall due. There is increasing disquiet in the sector at
companies pursuing balance payments from customers only for holidays to be cancelled. But Abta chief executive Mark Tanzer
rejected the idea the association should issue guidance, saying: “Balance-due dates are driven by commercial contracts. There isn’t a rule that says ‘This is when you should pay your suppliers’ or ‘This is how long the hotel will hold the room’. “Balance-due dates have to be decided company
by company almost on a day-by-day basis. “It would be very difficult for us to say
‘Everybody should pay 10 days before they go on holiday’. By that stage, the hotel could cancel the accommodation because they haven’t been paid. It’s down to individual companies.” Advantage Travel Partnership leisure director
Kelly Cookes has said a grace period of two weeks on balances could make “all the difference” in limiting damage to consumer confidence. But speaking on a Travel Weekly webcast, Tanzer
said: “If you believe the holiday is going to go ahead, you should collect the final balance because that will ensure the customer can have the holiday.
Mark Tanzer “If you believe the holiday isn’t going to go
ahead, you should not collect the final balance.” He conceded such decisions are “very difficult”,
saying: “Government advice is against all but essential travel, but we’re seeing countries open up [and] a loosening of social distancing in some destinations.” He added: “I don’t think there is a standard set
of timeframes for balances. It could be [suppliers] move the final balance date closer to the date of departure. But if you want to secure the holiday, there has to be a final balance paid at some point and it’s up to companies to decide when that is rather than up to Abta to mandate it. “Collecting too far out is unreasonable, but if
you leave it too late, the customer won’t get the holiday.” Tanzer added: “People underestimate how important it is for travel companies to keep
customers’ confidence.” i T
ravel Weekly webcasts, page 10
O O
Wizz Air boss predicts return to growth this year
A-Rosa says it will restart selected Rhine and Danube cruises at the end of May
Saturday, May 9 O
Eurowings to restart flights to holiday destinations in Spain,
Portugal, Italy and Greece from Germany this month
Sunday, May 10 O
O
Emirates Group reports 28% drop in profits
SPAA says 60% of members made new bookings in April, while 90% rebooked customers
O
Monday, May 11 O
O
having closed on January 25
P&O Ferries announces 1,100 redundancies
Etihad says it will resume Heathrow-Melbourne route via Abu Dhabi from May 21
Hurtigruten extends sailings suspension to June 16
O Shanghai Disneyland reopens O O
Avianca files for Chapter 11 bankruptcy protection
G Adventures’ Bruce Poon Tip launches e-book Unlearn: The Y
Tuesday, May 12 O
Ryanair announces plans to ear the Earth Stood Still O O
resume 40% of flights by July
Carnival UK confirms it has begun a consulation process with staff in Southampton
O
Virgin Atlantic announces flights to 24 destinations for summer 2021
Hays welcomes about 3,000 furloughed agents back to work
travelweekly.co.uk
14 MAY 2020
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