BUSINESS NEWS a strong summer, despite the many challenges. Ian Taylor speaks to chief executive Mark Tanzer


Tanzer defends subs hike as hitting ‘right balance’


Abta chief Mark Tanzer has defended an increase in members’ subscriptions averaging 8% from July, insisting the association has “the balance right” between managing costs and maintaining services. Members were notified of the


increase earlier this month (Travel Weekly, June 16). Tanzer said: “I’m sensitive to


the fact that Abta members are still suffering the effects of Covid and not by any means back to the sort of trading before Covid. The Abta board is very aware of that. We were keen to keep costs as low


as possible for smaller, independent members as we build back towards more normal trading. “The challenge is that, on the


one hand, we want to keep costs and subscriptions down. On the other hand, members and customers value the services we provide – bonding, legal advice, dispute resolution, all the things Abta does. “How do we deliver those services


without putting unnecessary burdens on members? We have about 95 people [working at Abta], all pretty much frontline. We don’t have a lot of layers. If we reduce costs, which


‘We will strive to tell people travel is a good career’


Intense competition for labour means it could take years not months to address the recruitment challenges facing the travel sector and require increased pay rates. Abta chief executive Mark Tanzer


travelweekly.co.uk Mark Tanzer


services are we not going to provide?” He insisted: “I think we’ve got


the balance right. No increase is welcome, but for about 75% of members it’s an increase of 4% or less – a long way below inflation.” Beyond the next 12 months,


Abta aims to keep going “on a break-even basis” he said. The letter notifying members of the increased subscriptions for the next 12 months, from Abta head of membership Danny Waine, also warned of above-inflation increases next year and the year after. Tanzer said: “Danny wanted to


flag that the board is looking at a recovery to normal trading over two to three years and, rather than put


Staff shortages have hit airports


subscriptions up in one jump, we’ll do it as gradually as possible as the industry recovers. “Subscriptions haven’t moved


at all through Covid, but costs have continued to increase and, although we’ve had a salary freeze, running costs continue to increase. We have to close the gap.” Abta has not decided on the


base year for revenue on which subscriptions will be based next year. Tanzer said: “We’ll have to see. We base our calculations on members’ last financial statements. Even though people are trading more normally, their historical accounts will be based on low turnover.”


earn a living and to have a career.” He said: “Getting that message


out is one of the things Abta wants to focus on over the coming months and years. “We have a challenge right


noted the competition to recruit and insisted: “We’ve got to work hard as an industry to persuade people travel is a good place to


through the supply chain, from travel agents to [airport] ground handlers, and not just because of Covid. We have an ongoing job to make sure wage rates are attractive to give the quality of service we want.”


Abta does not expect big shift to trust accounts


Abta does not expect a large shift to trust accounts and has yet to approve the trust arrangements of a single member. The association announced it


would accept trust arrangements to protect customer money for non-flight packages for the first time late last year. However, Abta made clear it would not manage or underwrite trust arrangements. Chief executive Mark Tanzer


told Travel Weekly: “I’m not expecting a huge migration from bonding to trust accounts. “We don’t want to be in


the business of running trusts. The ball is in the member’s court. If a company has a trust arrangement that meets the Package Travel Regulations and it’s clear what happens in the event the company fails – who does the claims handling and repatriation – we’ll say ‘Great’. “For some companies, that


may be the right solution. But for a lot of people, bonding is still the most cost-effective [option], rather than a trust account where a) you lose access to working capital, and b) you have to run the trust account.”


Tanzer noted digitising services


should “give a high-quality service rather than a lower-cost service.” He argued: “It’s great you can


download your boarding pass and get so much information about your flight on your phone. But there are occasions when you want to talk to a person, and you want a response because something has changed at short notice. “Getting that balance right is a challenge for all of us.”


23 JUNE 2022 47


PICTURES: Chris McAndrew/UK Parliament; Shutterstock/Olena Chukhil, zixia


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