Bed banks will review their ABTA membership if proposals are passed to make them accept liability if an agency fails. Bed banks contacted by Travel Weekly in the light of ABTA’s proposal confirmed they would have no choice but to reconsider their membership.
A spokeswoman for Thomas Cook-owned bed banks hotels4u.com and medhotels.com said: “In light of ABTA’s announcement, we are reviewing our position. If ABTA’s resolution is carried, we will assess if it is appropriate for hotels4u.com and medhotels.com to remain ABTA members.”
Similarly, somewhere2stay.com managing director Stuart Jackson said tough choices lay ahead for bed banks. “I have got to decide if we will cover bookings and change our commercial terms [with agents] or remove somewhere2stay from ABTA for agent-to-agent business.”
The bed bank could continue to sell product to agents as a principal in ABTA, he added.
Youtravel.com sales and marketing director Paul Riches said the bed bank would prefer to stay in ABTA, but admitted it may not be able to if the proposals are kept in place. “If we cannot resolve this I am not sure if we would carry on in ABTA. We are keen to get a better solution,” he said.
ABTA chairman John McEwan said: “The ABTA board wishes to reinforce the confidence that customers enjoy when booking with ABTA members.
“If certain companies don’t want to be a part of that, it is a matter for them.”
ABTA’s proposal will be discussed at an extraordinary general meeting on October 2. It will mean that bed banks in ABTA will have to pay back customers if an ABTA agency fails, even if it has yet to receive money for the booking.
Accommodation-only suppliers also said they will consider whether to charge agents for booking money as soon as the consumer pays, or at least eight weeks in advance of departure, rather than at the point of departure.