Abta comes under fire for forex move Juliet Dennis


Travel agents have accused Abta of betrayal after it launched a foreign exchange service, which they say could cause “massive” damage to the association’s own members. Abta Travel Money is to


offer more than 60 currencies at “competitive” online rates and commission free at 190 locations, or through home delivery, via foreign exchange provider Eurochange. Althams Travel managing


director Sandra McAllister said the announcement had come “out of the blue”, admitting: “This move feels like a betrayal of all Abta members.” Attaching Abta’s brand to a foreign


exchange provider could create ‘significant’ competition with its


members, particularly as a recognised, respected brand, she said. All 31 Althams shops sell foreign currency. “It is an important revenue


stream; an essential part of our business,” she said, adding: “I fear Abta’s move could have an impact on all high street agents’ currency sales. Without these same members’ support would it still be in business?” Advantage Travel Consortium


cited some “negative comments” from members. Chief commercial officer Kelly Cookes said: “We can understand why agents would see this as a competitive move. “Many members retail foreign


exchange and it can be an important incremental revenue opportunity, which is why we’ve been exploring options for members in this area. We


CAA poised to ask for more feedback on Atol reform


Ian Taylor


The CAA is poised to issue a “call for evidence” on Atol reform as a prelude to a second consultation next year. CAA head of operations for


aviation and travel Michael Budge confirmed there would be a release “very shortly” to “seek more feedback from the industry”. Budge told a Travel Weekly


Business Breakfast: “It’s a chance to comment before we set out the final consultation. Think of it as a call for evidence.” He also confirmed “there will be a transition period” for the


4 15 DECEMBER 2022


reforms, but declined to give details. The proposed reforms, first


published in April 2021, would require Atol holders to use trust, escrow or separate accounts for customer money, or to provide bonds or a combination of the two. Deloitte partner and head of


travel law Farina Azam said: “It’s clear from the consultation the CAA is not happy about [businesses] using customer money as working capital.” Aviation minister Baroness


Vere confirmed the government’s thinking last week, telling Abta’s Travel Matters conference: “We can’t have people operating on wafer thin


margins relying on payments from customers yet to take their holidays.” Azam said: “Baroness Vere was


clear, but it was in the consultation anyway [and] it’s how the CAA has been pushing the industry for the past few years. The CAA tends to push companies into a form of segregation or trust account if it’s not happy with its financial assessment when an Atol comes up for renewal.” She forecast an implementation


period of “18 months to two years” and warned smaller Atol holders “will potentially be disproportionately


This will have a


massive impact on the income of hundreds of independent travel businesses


hope to have further news about how members will benefit in the new year.” Agent action group Travel Agent


Reform Group Engaged Together (Target) said members had called the move “shameful” and confusing for consumers. Co-founder Graeme Brett,


director of Westoe Travel said: “This will have a massive impact on the income of hundreds of independent travel businesses.” Co-founder and


Pole Travel director Jill Waite asked: “What next, will Abta start selling holidays?” Miles Morgan Travel chairman


Miles Morgan admitted he was “somewhat confused” by Abta’s announcement. “Does this really mean they are setting up an arm of Abta to compete with members?” he said. Abta defended its move, saying


it would provide income so it could invest more in its membership. A spokesman said: “Abta Travel


Money has been developed to compete against other parts of the foreign exchange sector, such as supermarkets and the Post Office, rather than members. “As a not-for-profit organisation,


the income it brings will help us to invest further in member services.”


Julia Lo Bue-Said and Farina Azam


impacted”, saying: “If you’re a smaller business you probably have to pay suppliers upfront. You won’t be able to use a customer’s [money] any more. You’re going to have to cover those upfront costs yourself. That is one issue, and then there aren’t many bond providers. If you’re a small business, it might be more expensive to get a bond.” Julia Lo-Bue Said, chief executive


of The Advantage Travel Partnership, said: “We’re hoping the consultation will support the need for not one size fits all.”


travelweekly.co.uk


PICTURE: Sarah Lucy Brown


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