News

Elite Travel Group calls for clarity on bed banks and principal status

The Elite Travel Group is calling for an industry standard for bed banks on principal liability.

In a meeting on Wednesday, Elite bosses agreed there was an urgent need for a code of practice and kitemark to prevent agents finding themselves liable if something goes wrong during a client’s holiday.

Elite is to contact bed bank HotelConnect (which has previously called for a code of practice), ABTA and other consortia to request support.

Meanwhile, the consortium has stopped selling Med Hotels’ product through its dynamic packaging system after the bed bank decided to remove its principal status this week.

Elite director Peter Buckell said: “There is still confusion over the principal issue. It is worrying because agents could be held responsible. Now it is more important than ever for agents and operators to work together.”

“Agents are leaving themselves wide open if there’s no code of practice.“

ABTA expressed concern at the confusion about liability in agents’ transactions with bed banks. It also revealed it had sought guidance from the Office of Fair Trading.

ABTA head of legal services Simon Bunce said: “This is a serious issue. We raised it with the OFT some time ago, but it was not minded to act.

“Agents need to understand a bed bank could be [acting as] an agent or principal.”

Bunce ruled out ABTA overseeing a code of conduct for the sector, saying: “You can look at a company’s terms and conditions one day and they change the next day. It is a moveable feast.”

Share article

View Comments

Jacobs Media is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

The highest official awards for UK businesses since being established by royal warrant in 1965. Read more.