The Association of Independent Tour Operators (AITO) has written to the government’s new enterprise champion Sir Alan Sugar, asking him to stop the travel industry being unfairly targeted by the major banks.
In the letter, written by AITO director and Sunvil managing director Noel Josephides, the association asks Sugar to intervene, to help small and medium-sized travel businesses, which he believes banks consider high risk.
AITO claims the banks’ actions, such as threatening to withdraw merchant services and asking for high-value bonds and guarantees, are “bringing companies to their knees”.
Sugar, who will be given a peerage in return for an unpaid role advising business secretary Lord Mandelson, has announced plans to set up a panel to mediate between banks and small businesses.
AITO has contacted director of Cross Party Interventions Ben Coates about the issue, after Josephides attended a Fair Market Stakeholders meeting in November, but has so far received no reply.
Josephides said: “We are asking Sugar to investigate why banks are putting more pressure on us when they are supposed to be showing more understanding to small businesses. The heavy financial guarantees are bringing companies to their knees.”
Josephides said more transparency is needed on how merchant acquirers choose which travel companies to work with.
“We want the government to open up lines of communication. We also want to know why banks are taking a scattergun approach and not assessing each business on its own merits.”
He added: “Sugar is a businessman, so perhaps he will understand how serious this issue is. It is a life-and-death issue for travel businesses.”
A spokesman for Sir Alan Sugar said it was too early to comment on specific cases but added: “Sir Alan will be helping to ensure the voices of small firms are heard by government”.
Picture: Ray Tang / Rex Features
Help us fight back
A few years ago they just pulled the rug on us with no explanantion other than they were dumping tour operators. They withheld six months card turnover, nearly half a million pounds.
DiveLeader, writing on travelhub
Travel Weekly is working with the Association of Independent Tour Operators to take the travel industry’s battle with the banks to Sir Alan Sugar.
We are asking agents and operators that have recently encountered issues with their banks or merchant acquirers to get in touch.
AITO executive director Kate Kenward said: “A united front will create a bigger impact. We urge travel agencies and tour operators that are experiencing difficulties with their banks to write in to help Sir Alan take the banks to task.”
- Join our forum thread on banks and the travel industry
- Email your experiences to editorial@travelweekly.co.uk
- Write to us at Travel Weekly, Quadrant House, Sutton, Surrey SM2 5AS.