BUSINESS NEWS


law specialist’s virtual conference. Ian Taylor reports Abta is to review


Abta chief weighs merits of bonding and trust accounts


A wholesale move to trust accounts would require “the entire travel industry to recapitalise”, Abta chief executive Mark Tanzer has warned. Tanzer told a Travlaw online Big


Tent Event: “Covid has shown the exposure individual companies have when the music stops and suddenly the cash is not where you thought it would be. The whole system of how cash moves and who is protecting it is going to be reviewed. “If you were setting up the


industry from scratch, trusts might be the way to go. But we’re not in that position. We would probably have to recapitalise the entire


financial protection


TIA alliance draws criticism: ‘Not helpful to have another voice’


The formation of the new Travel Industry Alliance (TIA) has been criticised as “not helpful”, “not needed” and “not the way to go”. Aito joined the Latin American


industry [and] would see a lot of companies unable to do that.” He insisted: “Abta’s attitude to


trust accounts is not absolute. Our problem is we very often find them deficient. Often people prepay out of a trust account to pay airlines or suppliers. So if the company fails, all customer monies are not there. “With the bonding model,


you can call the bond, you get the money, you can bring people back and you can pay the refunds.”


Travel Association and seven other industry associations, including UKinbound and the Business Travel Association, in establishing the TIA last week. Speaking at a Travlaw online


Big Tent Event, Jess Dennison, director of Latin Routes, welcomed the TIA’s formation and asked Abta chief executive Mark Tanzer: “Why has Abta not joined?” Tanzer said: “We’re not in the TIA because we weren’t invited


and, to be frank, it’s not helpful to have another voice. The industry is frequently accused of being fragmented and not speaking with one voice. We worked hard to create the Save Future Travel Coalition, including some of the organisations in the TIA. We’re happy to work with other organisations if they sign up to the aims of the coalition.” Industry commentator Paul


Charles, chief executive of The PC Agency, agreed: “There is no need for another group to add to the long list of groups representing the industry. The government is not


really listening anyway.” i Get Social, page 21


‘Some RCN holders want refunds’ Ian Taylor


Atol-holders are still waiting for some airlines to refund money for flights cancelled due to Covid from last March and although refund credit notes have proved “a lifeline”, some customers are now demanding refunds. That is according to Jess


Dennison, director of tour operators Latin Routes and Polar Routes, who told a Travlaw online Big Tent Event: “Refund credit notes [RCNs] did buy us some time [and] definitely helped us through the most challenging time of the pandemic. They were a lifeline. “[But] I don’t think anyone


anticipated holding on to these RCNs so long. We’re still waiting for airline refunds from last March. That is how fundamentally wrong the situation is. Small tour operators are having to pay refunds out of their own funds.” Dennison added: “We hoped


travelweekly.co.uk We’re still waiting


for airline refunds from last March. That is how fundamentally wrong the situation is


RCNs would encourage people to rebook by the [RCN] deadline of March 31, but we’re starting to see quite a few customers with RCNs wanting refunds now.” She said merchant acquirers,


which process card payments, are adding to the pressure on businesses, explaining: “Merchant acquirers don’t recognise Atol as an assurance if we were to cease trading because the CAA refers people back to credit cards [for refunds]. “That is appalling. What is the


point of us having an Atol licence? We are penalised for it. It’s infuriating.”


Dennison said the industry


had “been overlooked” by the government, but she described the furlough scheme as “very welcome”. Travlaw partner and head of


employment Ami Naru suggested the government is likely to extend the furlough scheme for a fourth time. The scheme is currently due to run until the end of April. Naru said: “When chancellor


Rishi Sunak introduced the scheme in March [last year] it was to extend to May and no further. It has been extended three times [since]. “I can’t believe it won’t be


extended [again] because if it’s not extended, there will be more job losses. It’s not just the travel industry saying it has to be extended”. She noted: “The government was


due to review its 80% contribution [to the cost of furlough] and most likely to reduce it in January and it hasn’t.”


4 FEBRUARY 2021 Ami Naru 35


PICTURE: Shuttertstock


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