The Association of Independent Tour Operators is
considering ditching its policy of 100% financial protection on all
members’ products on the grounds it is at a commercial
disadvantage compared to competitors.
Increased competition from unbonded suppliers, the likelihood
the Government won’t act on calls for legislation soon enough
and question marks over the public’s interest in protection
have forced AITO to take a fresh look at its regulation.
Members pay a separate bond to an AITO trust fund in addition to
ATOL requirements, covering all products from packages to
accommodation-only.
AITO has frequently asked the Government to act on regulation
loopholes but the question was posed at its annual overseas
conference as to whether members should now switch tactics.
If no meaningful legislation appears within the next year to
tackle the inequalities of the bonding system, members were asked
whether AITO should abandon its 100% financial security
guarantee.
Explore Worldwide operations director Derek Moore questioned the
importance of protection.
“Given an increasing percentage of clients don’t give a
damn about protection, should we stop denying ourselves a slice of
the business and move towards a level playing field in the sense of
deregulation?”
AITO chairman and Inntravel managing director Richard Hearn said
promoting the protection message introduced a negative slant to
consumers. “It’s a difficult proposition to put forward
– book with us and if we go under you’re protected.
You’re putting failure in a consumer’s mind.” Around
two-thirds of conference members disagreed with axeing regulation,
while others said it made commercial sense.
Wildlife Worldwide director Chris Breen said the current
position could “strangle” businesses and money would be better
spent on e-commerce and staff training. “Smaller companies have to
cover their bond with insurance.”
But AITO specialist travel agents chairman Andrew Brownrigg
said: “One of the main selling points is that all operators are
bonded.”