ARTAC Worldchoice is threatening legal action against ABTA as it launched a two-pronged attack on the association.
The consortium is furious that Newman Street is demanding bonding from agents even though they are already protected under ARTAC’s own payment system, ARTAC’s Credit Account System.
Chairman Colin Heal said it robs his consortium of around ú75,000 each year.
In a separate move, ARTAC criticised the association for not automatically offering it a place on the proposed new board. Heal said he would turn down the offer of a seat on the proposed new regional council.
The bonding saga surrounds the Applicable Risk Turnover fee – 0.15% of turnover – that agents have to pay if they are part of ABTA’s Travel Agent Bond Replacement Scheme.
Although ARTAC only has to pay 50% of the fee following pressure from the consortium two years ago, Heal argued his members should not have to pay it all.
“Given that we take full responsibility for ACAS transactions, it is quite indefensible for ABTA not to waive this,” said Heal. “We are paying ABTA to be bonded when members are already protected through ACAS. We have contacted lawyers who say we have a good case.”
He said members believe ABTA is victimising ARTAC as it will not join the association’s Single Payment Scheme.
Chief executive Ian Reynolds said it was happy to review the current arrangements but pointed out that ARTAC’s scheme covered claims from operators but not from consumers. “We will look at this again but I don’t think it is likely there will be a 100% redemption,”he said.
Meanwhile, Heal announced the ACAS system is soon to go electronic, saving members from dealing with hundreds of slips of paper, while an Internet site is being developed. On-line bookings are expected to be made with agents by the end of the year.
n ARTACconference news, see pages 25 and 27