The Association of Independent Tour Operators (AITO) said there is no quick fix to the industry’s problems with the banks following a meeting with the Department of Business Innovation and Skills (BIS).
The meeting with director of cross-market interventions Ben Coates and other BIS representatives followed complaints from operators and agents who feel they have been unfairly targeted by the banks. Some have threatened to withdraw merchant services or demanded high-value bonds from travel companies, as they are seen as high risk.
AITO was assured the government would discuss the matter with the banks at a credit card summit last November, but the association heard nothing until Travel Weekly contacted BIS last month.
AITO director Noel Josephides said: “It is clear from the meeting that there is no quick fix, and that is what members who are under pressure from the banks need.”
The department said the issue would be looked at as part of the government’s review of financial protection in the autumn. Coates also asked AITO to provide an accurate picture of how its members have been affected by changes in the banks’ requirements.
AITO is in the process of setting up meetings with the banks.
Josephides added: “We worry that the risk management teams in banks don’t understand the difference between travel companies. BIS has given us a contact who will listen, so it is our job to help members by asking the banks not to tar us all with the same brush.”