AITO talks tactics

The Association of Independent Tour Operators is considering ditching its policy of 100% financial protection on all members’ products on the grounds it is at a commercial disadvantage compared to competitors.

Increased competition from unbonded suppliers, the likelihood the Government won’t act on calls for legislation soon enough and question marks over the public’s interest in protection have forced AITO to take a fresh look at its regulation.

Members pay a separate bond to an AITO trust fund in addition to ATOL requirements, covering all products from packages to accommodation-only.

AITO has frequently asked the Government to act on regulation loopholes but the question was posed at its annual overseas conference as to whether members should now switch tactics.

If no meaningful legislation appears within the next year to tackle the inequalities of the bonding system, members were asked whether AITO should abandon its 100% financial security guarantee.

Explore Worldwide operations director Derek Moore questioned the importance of protection.

"Given an increasing percentage of clients don’t give a damn about protection, should we stop denying ourselves a slice of the business and move towards a level playing field in the sense of deregulation?”

AITO chairman and Inntravel managing director Richard Hearn said promoting the protection message introduced a negative slant to consumers. "It’s a difficult proposition to put forward – book with us and if we go under you’re protected. You’re putting failure in a consumer’s mind.” Around two-thirds of conference members disagreed with axeing regulation, while others said it made commercial sense.

Wildlife Worldwide director Chris Breen said the current position could "strangle” businesses and money would be better spent on e-commerce and staff training. "Smaller companies have to cover their bond with insurance.”

But AITO specialist travel agents chairman Andrew Brownrigg said: "One of the main selling points is that all operators are bonded.”