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ABTA to meet bed banks ahead of next week’s vote

ABTA is to meet bed banks on Monday ahead of next Friday’s vote by members on liability.


ABTA chairman John McEwan said the meeting would be an opportunity for “open dialogue” with bed banks but stressed the proposal would not change.


Bed banks have voiced concerns about the proposal, under which they assume liability when a travel agency fails, and complained about a lack of prior consultation.


Paul Riches, sales and marketing director at ABTA bed bank Youtravel.com, said the focus should be on agents ensuring customers’ money is secure rather than bed banks. “The focus should be on the moment the customer parts with the money,” he said.


Steve Endacott, founder of non-ABTA bed bank Holiday Brokers, which also meets ABTA next week, agreed: “I fail to understand why ABTA is not insisting all members put customer money in trust funds or pay the supplier when they collect money from customers.”


Meanwhile, trade organisations said ABTA’s clarification had helped but admitted there was still confusion.


Worldchoice chairman Colin Heal said: “There seems to be quite different views among members on the proposal because they don’t totally understand it all.”


McEwan said there would be an opportunity to debate the issue at the meeting. He said: “There is an opportunity for anybody to make comments [at the meeting]. The die is cast in terms of the resolution but any feedback would need to be taken into account.”


He added there was an option for agents to set up trust accounts but that would be a commercial arrangement not dealt with by ABTA.


ABTA is inviting members to vote by proxy if they cannot attend the general meeting at 12 noon on Friday, October 2. As a result of continuing industrial action, members are urged to fax rather than post votes in. The deadline is 12.30pm on Thursday, October 1.

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