Somewhere2stay is to remain within ABTA despite the decision by rival Thomas Cook-owned bed banks hotels4u.com and Med Hotels to quit.
Hotels4u.com and Med Hotels were the first to quit ABTA, while youtravel.com, the last sizeable bed bank left in ABTA, has yet to make a decision.
The differing actions follow ABTA’s resolution to force bed banks to assume liability for bookings if an ABTA agent fails. Bedbank.com boss Peter Healey has already called for ABTA to be disbanded.
Somewhere2stay managing director Stuart Jackson said: “On balance, we believe we are better off staying in ABTA. We do not disagree with ABTA’s stance that it is endorsing what is generally perceived to be accurate within agency law.
“Whether we stay or not would not necessarily make any [commercial] difference. I don’t believe any individual agent will have a change of conscience [on who to book with] but this is as much about why they are part of ABTA and voted for this.”
Jackson admitted a potential cost disadvantage for ABTA bed banks but endorsed its view that the Office of Fair Trading would clamp down on non-ABTA bed banks that refuse to pay back consumers’ money.
But the decision is at odds with the largest combined bed bank in the trade, Med Hotels and hotels4u.com, which quit because trading within ABTA is “incompatible with its business model”.
Thomas Cook director of government and external affairs Andy Cooper rejected ABTA’s suggestion bed banks could collect payments from agents earlier.
“This meant we had to take on board a credit control risk that doesn’t make sense. The risk you face is you are no longer acting as an agent for a hotel principal.” He was confident the decision would not hit bookings because of Thomas Cook’s backing, and denied the move was a precursor to the parent company quitting. “Thomas Cook is staying for the foreseeable future,” he said.
ABTA chairman John McEwan said the association could not stop agent members booking non-ABTA bed banks.
“ABTA suppliers do not cover the total extent of the market, and agents might have to deal with non-ABTA suppliers for commercial reasons,” he said.
McEwan said Advantage was reviewing its bed bank relationships. “We will make it clear to members the differences between those in ABTA, and those that sit outside,” he said.
Other agents, such as Future Travel and Freedom Travel Group, said they would continue to book non-ABTA suppliers. Worldchoice said it would continue to work with some non-ABTA bed banks.