Sweeping changes at ABTA

Changes to ABTA’s role will put the onus on travel agents to tell consumers whether the holiday they book is financially protected or not.

The association has announced details of its review, which will reduce its consumer protection role but increase its responsibility as a lobbying and policy-forming trade body.

ABTA will no longer require its members to have a bond with it, will no longer require an ABTA bond to cover non-licensable product, will cap the amount by which members are bonded to three times their annual subscription and will drop ABTA’s accounts auditing process.

The changes are aimed at widening the criteria to allow online companies to join ABTA and to clear up confusion on the association’s role, particularly concerning financial protection.

Chief executive Mark Tanzer said: “There is a lot of confusion as to what ABTA’s role is. It’s important to say what we will do and where we stop.”

The changes, coupled with the Government’s rejection of the £1 levy last year, puts ABTA and travel agents under more of an obligation to educate customers on what is and isn’t protected. “As an industry we have an obligation to educate consumers,” he said.

“More holidays are coming outside the package holiday definition and this is putting our members at a disadvantage. They are having to pay the financial protection cost,” he added.

The changes received a mixed reaction. Advantage managing director John McEwan said: “The customer is going to be more exposed than ever.”

Worldchoice deputy chairman Keith Wilson said: “This could lead to a lot of confusion in the customer’s and agent’s mind.”