A rising number of unlicensed tour operators from outside the EU are putting the businesses of reputable UK suppliers in jeopardy, according to Abta chairman Noel Josephides.
He said it was “shameful” that the government had failed to crack down on unlicensed operators touting for business.
Speaking at this year’s Aito Overseas Conference in Evora, Portugal, Josephides said the number of overseas unlicensed operators marketing direct to UK holidaymakers was increasing, particularly at consumer travel exhibitions and online.
This was not only creating an unfair “playing field”, but putting licensed operators’ businesses at risk and allowing consumers to travel, often unknowingly, without financial protection, he said.
“The real issue is more overseas operators are becoming more confident in marketing direct to the UK public. Incoming operators that in the past have provided packages to UK operators are now going direct to the customer.
“We are seeing the numbers shooting up. It’s one thing if a customer sources these companies themselves, but it’s another if they are advertising their services on Google or at consumer travel fairs.
“They have to comply with the Package Travel Regulations. They have to provide financial protection. If they sell flights they have to have an Atol and adhere to the Civil Aviation Authority’s regulations.
Josephides, chairman of industry issues on the Aito council, added: “The government is putting the public at risk as well as the livelihoods of a lot of small operators that are losing business to [unlicensed] organisers.
“It’s particularly shameful the government seems to be making no effort to stop what is going on. A lot of our members feature holidays in regions outside the EU and will suffer from unfair competition.”
Aito chairman Derek Moore said unlicensed operators were avoiding bonding, health and safety and other compliance costs. He urged agents to talk about financial protection with clients.
“Agents can foster the knowledge in people’s minds it’s important to use a licensed operator,” he added.