Abta chief executive Mark Tanzer has defended the increase in members’ subscription rates for 2023-24, hailed the increased flexibility of the association’s new bonding requirements, and insisted membership numbers are stable.
The association’s subscriptions rise by 8.5% from July and are due in one payment on July 3. The increase and reversion to a single payment have attracted criticism from some members.
However, Tanzer told Travel Weekly: “I’ve had very little feedback on the subscriptions increase. We signalled last year we were going to go back to a single collection date and the increase is below the headline rate of inflation.”
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Comment: Did Abta do right by members during the pandemic?
He noted: “We basically froze subscriptions through Covid, but costs continue to inflate so there is a certain catching up [required] to get back to breaking even, which is where our members want us to be.
“Most of our costs are labour costs and, like everybody else, we’re trying to balance our ability to provide our services with keeping costs to a minimum. Our board members are all subscription-payers, and the board looked at it and decided this [increase] was right for members and for the association.”
Tanzer added: “Ultimately, what determines this is whether people are getting value for money for their subscriptions? We’re focused on making sure we provide the range and quality of services members tell us they need at the lowest possible cost.”
Abta confirmed a relaxation of its bonding rules from July 1, including increased bond-renewal options and changed criteria for assessing members’ finances following criticism of its bonding demands during the pandemic.
Tanzer said the changes “have been well received, even by people critical of the way we do bonding”.
He explained: “It’s loosening some of the criteria we apply, reacting to the fact the bonding market is opening up and people are trading, so the risk profile of members is changing. We want to give members as much flexibility as we can.”
It has been suggested Abta lost members to the Association of Bonded Travel Organisers Trust (Abtot), which retained less-stringent requirements through the pandemic. But Tanzer said: “This wasn’t a reaction to Abtot. We always try to come up with the most-competitive solution.”
He hailed the recovery of both Abta and its members from Covid, saying: “We’ve new members joining and, without being complacent, the brand is in a very strong position.”
Tanzer said: “The board were very keen through Covid not to damage the fabric of the organisation to a point where we couldn’t deliver our services when the industry came back, because people need bonding, need legal advice, need training.”
He described membership numbers as “very stable”, adding: “They have been for almost five years.”
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