Thomas Cook has extended its payment window to force agents and customers to pay earlier, despite the trade fighting off a similar proposal by Tui Travel last year.
The revised terms demand payment 10 weeks instead of eight weeks before departure, and come into force on May 1.
The move has prompted criticism from agents. They now face having to ask for balances up to three months before departure and having to alter their payment systems.
It comes at a time when many agents are struggling to survive the impact on their cash flows of the downturn and crises such as the BA strikes and ash cloud flight ban.
A Thomas Cook spokeswoman said agents had been given “several weeks’ notice” of the change and the move to 10 weeks brought Cook in line with other operators.
Last year Tui consulted the trade about extending its payment window to 12 weeks from departure, but backed down in the face of stiff opposition.
Jane Atkins, managing director of Future Travel, was unhappy with the timing of the Cook announcement.
“Independent agents will have to spend money to change their systems at a time when no one wants to be spending money,” she said.
“Customers will decide whether to book with Thomas Cook or with an operator which takes the money eight weeks in advance.
“Until such a time as Cook’s competitors follow them, they are at a slight disadvantage and it could lose them some sales.”
Sue Foxall, owner of Kinver Travel, said the market was tough enough already without further reasons to put people off booking a holiday.
“There’s not a lot of money out there for people to spend and it is very quiet,” she said.
“There’s still a lot of capacity in the system and agents are already being bombarded with special offers and late offers.”
Brian Potter, chairman of the Scottish Passenger Agents’ Association, added that while many consumers were struggling financially, the earlier payment deadline means they run an even greater risk of losing their money if they are forced to cancel.
He said: “If you’ve paid 10 weeks in advance then there’s all that time to lose your money. It is not something we look at positively, but you can see why Thomas Cook are doing it as it helps their cash flow.”
Thomas Cook’s move to 10 weeks could prompt others to move away from the established eight-week payment terms on which many firms’ business models are based.
Peter Goord Travel owner Anthony Goord said the full impact would be felt for bookings for early next year.
“People going away over Easter may have to pay in January when there isn’t much money about,” he said.
The Cook spokeswoman added: “Many independent agents collect final balances more than 10 weeks in advance of departure.”
Tui confirmed it would not be following Cook’s lead.
Will shorter deadlines damage sales for Thomas Cook? Have your say on the travelhub forums