ABTA hopes to clear confusion among travel agents, consumers and bed banks over liability for bookings when a company fails by September, at least among its members.
The association is in talks with accommodation-provider members as it seeks to finalise proposals it will enforce through its code of conduct, believing the Office of Fair Trading could then be called on to police the activity of non-members.
The failures of Freedom Direct in April, and Harvey World Travel in June, highlighted confusion over who is liable for clients’ money under agency law.
ABTA continues to believe bed banks should honour bookings when a travel agent fails – a view that has been challenged by bed bank owners.
The association’s head of legal affairs Simon Bunce told Travel Weekly: “We are looking to achieve a solution, initially in respect of ABTA members, that avoids the complexities of agency law, so the responsibilities of relevant parties are clear for consumers and the trade.
“We are in discussion with relevant members and looking to take this forward by the end of August or early September.”
Bunce said: “Depending on the solution, there are other ways of dealing with companies outside of ABTA.”
He added: “One of the benefits of self-regulation and the ABTA code of conduct is that flexible solutions can be found to deal with industry realities.”