Operators look for guidance on new transparency ruling

Agencies seek to clear up confusion about displaying ownership links

Operators look for guidance on new transparency ruling

Report by STEVE JONES

Operators are thrashing out exactly what they must do to comply with the new rules on transparency as miniples were told they too must fall into line.

The Office of Fair Trading will write to the big four this week demanding to know how they plan to comply with the Government’s new rules on transparency (Travel Weekly August 14).

With no precise details on wording or size of notices, Thomson, Airtours, Thomas Cook and First Choice are putting their own interpretation on the order which requires ownership links to be displayed inside and outside shops and on brochures and stationery.

Clarification is also being sought over whether the ruling extends to holiday bookings on Teletext.

The OFT will then examine the proposals and either accept them or seek further talks with operators. All companies must abide by the order by October 9.

All agencies owned by the big four – not just the multiples – must display their ownership links under new rules set out by consumer affairs minister Kim Howells. It means agencies such as Sibbald Travel will have to make clear their links with Thomson, while Hays Travel will have to display notices explaining its ownership links with First Choice.

Industry observers said the new rules could hit the smaller agencies which thrive on the public perception they are independent. But Thomson-owned Travel House said the ruling could benefit miniples who have been snapped up by the majors.

Managing director Martin Morgan said: “Some people will feel more confident about booking with a local agency if they know it has the backing of a major travel company. There is still a feeling among many people that if you’re not big, you’re going to go bust.”

Bakers Dolphin managing director Kevin Abbey, who sold his West Country company to First Choice, said it will have little impact on booking habits.

“We are well known in the area and I would think this will make little difference,” said Abbey.

Everyone’s under scrutiny: miniples like Bakers Dolphin must also declare their ownership links