Accommodation-only supplier Youtravel.com has joined ABTA as it bids to stand out in a crowded market place.
The company has already taken on principal status in order to protect travel agents from any potential health and safety issues in resort.
Many rivals have held off making the switch because of the cost of VAT but as competition in the sector hots up some agents have said they will only sell product from accommodation-only suppliers acting as principals.
Sales and marketing director Paul Riches said its decision to be part of ABTA and act as a principal represented its commitment to being a responsible accommodation-only supplier. He claimed ABTA remained a strong and worthwhile brand to be associated with, despite its planned changes.
“ABTA is a strong brand recognised by consumers for its regulatory controls and stability,” he said.
He said it could be “a matter of time” before the VAT man catches up with accommodation-only suppliers claiming to be agents but acting as principals.