Travel Counsellors criticises latest ABTA changes as bad news for customers

ABTA logo

Local 'Travel Counsellor', Moira Garrod, is warning Rochdale holidaymakers they need to be aware that ABTA will no longer help holidaymakers who lose out due to the failure of an ABTA member travel agents demise.

As a consequence of the negative effect this could have on holidaymakers Travel Counsellors PLC, an independent travel agency, has said it has decision to create a Financial Trust to protect its customers has been vindicated by ABTA’s latest announcement that it will not pay customers should the travel agent that they book their holiday with collapse.

Following the latest meeting of the ABTA Board of Directors, ABTA has announced a number of membership changes including that it will ‘cease direct payments to consumers in respect of failure of Members conducting retail activities’.

Travel Counsellors established its Financial Trust, which is independently administered by the Barclays Bank Trust Company, in September 2004 due to the loopholes in the financial protection offered by ABTA and ATOL. Now that customers will not even be protected against the failure of an ABTA agency that decision has been vindicated.

Travel Counsellors chairman David Speakman said:

"This latest move by ABTA is extremely bad news for customers. Even if they book with an ABTA agent, if that agent fails the new rules means they will not get their money back. There is no doubt that establishing the Travel Counsellors Trust was the right thing to do. It gives our customers a copper-bottomed guarantee that their money is 100% protected.

"Unlike customers booking through ABTA agencies, Travel Counsellors’ customers can be sure that when they book their travel arrangements that should either Travel Counsellors or the supplier that their holiday has been booked with fail, that their money is 100%  guaranteed. The Trust means each and every one of its clients can be sure they will be fully reimbursed in the event of ANY supplier failure – including low cost airlines, scheduled air, package holidays, accommodation only and car hire.

"A recent example of when the Trust came into effect was after the failure of low cost airline EUJet – three customers who booked by debit card and so were not covered by their credit card company received full reimbursement. If they had booked independently or through an ABTA agent they would have lost their money."