The multiples have sent a defiant message to the Government that they will not change the way they sell insurance.
Their comments follow a renewed investigation by the Office of Fair Trading into their sales methods.
The OFT is acting on complaints that customers are being coerced into buying the agents’ travel insurance, which is crucial to their profitability.
They are also examining whether the tactical offer of free insurance – now widely used by the multiples – is a way of dodging last November’s ruling that vertically integrated companies cannot insist customers buy insurance as a condition of gaining a discount.
An OFT spokesman confirmed:”We have had complaints and are looking at whether they restrict, distort or prevent competition.
“Claims have been made that retailers are pressurising customers into buying insurance if they cannot prove they are already covered by a third party.”
The multiples insisted they were doing nothing wrong in the way they offered or sold insurance.
Thomas Cook retail managing director Andrew Windsor stressed the chain would not be altering its policy in light of the OFTinquiry.
“Last November, travel agents were banned from linking discounts with the sale of insurance. As far as I am concerned we are abiding by the letter of the law,” he said.
“We have certainly not been coercing customers into buying our travel insurance. If they do not have insurance when they are booking a holiday we ask them to buy our own or, if they wish, to purchase it elsewhere, on condition they sign an indemnity form.”
Going Places deputy managing director Paul Evans admitted agents will attempt to sell their own insurance “like any other added-value items.”
“We want to see that customers have insurance and if they don’t, we will offer our own. But it’s not compulsory and we don’t use any hard-sell tactics,” he said.
“As for free insurance, it is purely a promotional offer that has no competition implications whatsoever. “We shall continue with our present policy.”
A Lunn Poly spokeswoman said the multiple was acting within the Government’s guidelines of last November.
“There is nothing wrong with what we are doing and we have no intention of changing,” she said.
ABTAalso backed the retailers stance, but pointed out that the OFT was “duty-bound” to investigate complaints.
Chief executive Ian Reynolds said:”It does not mean they will be upheld.
“We understand that operators and agents need to ensure clients are insured. If customers travel without insurance and something happens it is the agents who are liable.”