Triton sets deadline for bed banks to become principals – 1 Feb 2007

Triton will dump accommodation-only suppliers that have not taken on principal status by the end of this month.

The super-consortium claims nine of its 12 bed banks are already acting as principals but it has given the remainder a deadline of four weeks to change.

Triton director John McEwan wants to ensure his members are not liable in the event of a tragic accident, such as the carbon monoxide poisoning deaths of two children in Corfu last year.

Accommodation-only suppliers have said they are happy to take on the responsibilities of being a principal. However, some are reluctant to change because they would have to pay VAT under the European Tour Operators Margin Scheme (TOMS), increasing prices.

To avoid being caught by TOMS, bed banks have been working to create an industry-wide health and safety standard, supported by Docleaf, which includes the use of indemnity insurance.

However, Hotels4u.com bowed out fearing the cover it offered would not be as comprehensive as being a principal. An announcement on the scheme was put on hold last week.

“It did not give us the cover that we wanted,” said sales and marketing director John Harding. “We already do a lot more than it was proposing.”

Medhotels has also refused to take part in the scheme for the same reason.

McEwan said Triton is in talks with the companies proposing indemnity cover, including Steve Endacott’s Holiday Brokers. However, he insisted Triton was standing firm on its requirements.

“I understand the VAT reasons but our members must be protected,” he said. “I don’t want the waters to be muddied so bed banks must become principals.”