The Bonded Coach Holidays (BCH) financial protection scheme did not fail customers of Shearings when the coach tour operator’s parent Specialist Leisure Group went into insolvency in May last year.
Senior figures at BCH have rejected the suggestion that the failure of Shearings left some customers “uncovered by BCH bonding”, insisting the extent of financial protection was determined by the coach operator.
Ray Coyne, company secretary of the BCH and the Confederation of Passenger Transport (CPT) which runs the scheme, said: “We abide by the Package Travel Regulations [PTRs] and bonds [with us] are for what is covered by the PTRs.”
Liam Race, new chief executive of the Leger Shearings group, had suggested some non-package customers were left without refunds when Shearings ceased trading. Leger Holidays acquired the Shearings brand last June.
Explaining Shearings’ recent move to trust arrangements to protect consumers’ money, Race told Travel Weekly; “The collapse of the company under the former owner left a nasty taste for customers left out of pocket due to some components being uncovered by BCH bonding.”
He said the new cover would extend to “self-drive breaks and gift vouchers which were not previously covered”.
But Coyne said: “It is wrong to infer people were not covered due to us. It was because of the old Shearings’ policy. It was down to the tour operator.
“We provide cover if people want it, otherwise we provide cover in line with the PTRs. It is a commercial decision [by the tour operator].”
Abta confirmed at the time of the failure that “the majority of coach package bookings are financially protected by the CPT’s bonding scheme” and the remainder by the CAA under the Atol scheme.
The CPT recently secured the future of the BCH scheme through an alliance with the Association of Bonded Tour Organisers’ Trust (ABTOT).
Coyne said: “From May 1 we’re going into partnership with ABTOT. We will still be the BCH. Members will get all the benefits of the CPT, but the administration will be done by ABTOT.”
The CPT is authorised by the Department for Business (BEIS) to run the BCH scheme.
In a statement announcing the change, the BCH noted the Covid-19 pandemic had placed “unique strains” on the scheme given the need to hold “significant financial reserves and shortfall insurance” in case a bond proves inadequate.
It said: “Whilst current bond levels were sufficient to cover failures before the pandemic, there have been subsequent calls on the shortfall insurance making it unlikely to be renewed.
“In addition, the terms of the BCH scheme require CPT to hold reserves at a level which, given the current climate, it is not realistic or sensible for CPT to achieve. CPT’s new alliance with ABTOT will ensure the future of BCH.”
Coyne explained it would not have been possible for Leger to bond Shearings through the BCH scheme because “you need to have at least one coach and an operator’s licence and be a member of the CPT to apply to join”.
The CPT plans to host a meeting alongside ABTOT on February 2 to answer members’ queries.