p10 abta oct10 8/10/08 22:42 Page 10
news conference report
ttglive.com
The Travel Convention 2008 • Consumer protection
LEVY PROPOSALS.
‘Tiered levies are answer’
Robin Searle.
CUSTOMERS should pay £2 to protect a holiday
e Dunlop
and £1 to protect a flight, and bonding should
be scrapped entirely, Abta delegates were told. Photos: Stev
Chris Photi, White Hart Associates senior
partner, said the government must act to remove
discrepancies that allow passengers on the same
flight to travel with or without protection.
Photi called for the creation of a two-tier levy
system, while All Leisure Group chairman Roger
Allard went further, calling for a third tier
with start-up companies paying £3 or £4.
Photi also criticised BA chairman Martin
Broughton for dismissing the levy idea, accusing
him of a “smug” attitude to consumer protection.
Broughton defended his company’s opposition
to a levy, saying such a scheme would mean
airlines such as BA, with healthy balance sheets,
effectively subsidising struggling rivals.
The recommendation for a tiered levy builds
on the demands of TTG’s Just a Quid campaign,
which in 2005 called for a blanket £1 levy for all
bookings but was rejected by the government. Photi: accused BA of “woeful” attitude Broughton: argued strong airlines shouldn’t subsidise weak
XL COLLAPSE. CONSUMER PROTECTION.
CAA role ‘limited’ ‘Don’t pass buck to credit cards’
during aftermath
THE INDUSTRY is in danger of passing its prob- on the costs of dealing with travel company
lems on to credit companies – and firms may face failures by charging “a huge premium” or even
THE ROLE the CAA plays in consumer protection higher charges or even refusal of credit as a result. refusing authorisation to some firms.
was criticised by senior industry figures during The warning came from Hays Travel boss John “Customers don’t understand protection, so
The Travel Convention. Hays, who said that shifting the responsibility for they then think they should put everything on
Companies such as Thomas Cook, Tui Travel financial protection on to credit card companies credit cards,” said Hays.
and Virgin deserved the credit for the rescue was not a sustainable option. “We’re in danger of passing our problems on
operation after the collapse of XL Leisure Group, Instead, he said credit card firms would pass to the credit card industry.”
not government bodies, claimed Co-operative
Travel managing director Mike Greenacre.
He thanked the operators for their actions and
LOBBYING.
questioned exactly what role the CAA should play.
He was speaking at an e-tid briefing along with
Abta urged to do more to pressure the politicians
John Wimbleton, Tui Travel’s activity holidays
sector managing director, who said the civil ABTA was urged to revive efforts to But while she said Abta should do
servants in the CAA had “limited influence”. lobby government to improve financial more to pressurise ministers, FTO di-
“All it can do is deal with the cards it is dealt protection for customers rather than rector-general Andy Cooper said there
and in another five years, when a big collapse leaving efforts to the big two. was a fundamental lack of interest.
like this occurs, the situation will probably be the Jo Rzymowska, Royal Caribbean “Politicians see outbound tourism
same,” Wimbleton said. general manager, said all travel firms as competition for the domestic
should be keen to create a clear system market; but the willpower is here to do
■ ‘Industry also helped XL staff’: Letters, p41 that would reassure customers. Jo Rzymowska something,” he said.
10 10.10.2008
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