ABTA has forced Members who are bed banks, to honour bookings if the travel agent goes bust…
Bed banks are accommodation only suppliers.. Previously they could wriggle out of honouring bookings from failed agents, now they cannot..
Which means it would make sense for you to book accommodation only deals with us as our worldwide accommodation only hotel and self catering offers are ABTA bonded..
Previously travel agents who booked accommodation only deals on your behalf did not have to pay for the accommodation booked until departure..
This meant if they went bust, you had no booking, as the bed banks or accomodation only supplier did not have to honour the booking, this has now been changed.
This not unexpected decision means all Abta members, including bed banks, will be expected to honour bookings made by failed agents even if they have not received the cash.
The move comes after the collapse of big online retailer Freedom Direct in April exposed how large numbers of customers risk being left out of pocket when, poorly run travel agents are allowed to hold onto customers monies until departure – fail.
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