ABTA’s new Financial Protection Plan has been slammed
for failing to deliver the protection expected.
Members hoping for an all-inclusive insurance system are
disappointed the scheme only covers the failure of an airline,
accommodation owner or car-hire company. It fails to cover non-ABTA
operators, car-hire brokers, accommodation-only agencies or
brokers. Under the scheme, agents must inform clients if their
booking is not covered by ABTA’s bonding system and to offer
the new financial protection scheme – understood to cost
£1.50 per person. ABTA head of finance Mike Monk said the
scheme “plugs a gap”.
However, some agents have expressed concern the plan is not the
answer to the industry’s uneven bonding playing field.
Midconsort chief executive Charles Eftichiou said: “It was
meant to cover everything, but it’s just confusing. Without
car hire and accommodation-only, it cuts out half of what people
want it for.”
An ABTA spokeswoman said the scheme covers all companies that
can’t join the association and operate under its bonding
scheme. “It would undermine the bonding system if we covered
companies that would otherwise have to join to get the benefits of
membership,” she said.