ABTA is to backtrack on its refusal to pay out on
accommodation-only claims following the collapse of former
president John Harding’s company Travelscene.
Newman Street initially claimed it was not liable for payouts on
Citybedz and Austro Tours, both of which emerged as unbonded
subsidiaries of Travelscene after the group collapsed on August 19.
Neither brand was in ABTA membership.
However in a dramatic u-turn, ABTA has said it will pay to
agents who booked through the accommodation-only brands believing
in “good faith” they were covered by ABTA protection.
“We have made this decision because agents booked in good faith
believing they were ABTA-bonded,” said a spokeswoman.
It has not yet emerged the value of Citybedz and Austrotours
payouts, but estimates put Travelscene Group as owing
£1.5million. Around 25% of its total business is believed to
be accommodation-only.
Harding, Travelscene sales director, has maintained he was
forced to compete with other non-bonded suppliers in the
market.