Bed Banks threaten to leave ABTA

Bed banks OR accommodation only suppliers, will review their ABTA membership if proposals are passed to make them accept liability if a travel agency fails..

Our advice on this matter is simple do not book with an Agent book direct. Cheaper accommodation deals.

Accommodation-only suppliers also said they will consider whether to charge agents for booking money as soon as the consumer pays, or at least eight weeks in advance of departure, rather than at the point of departure.

ABTA has been criticised for directing consumers to bed banks, in order to recoup money following the failures of Freedom Direct in April and Harvey World Travel in June.

Customers who were then out of pocket by Freedom Direct’s collapse, were forced to approach their credit card companies for reimbursement, increasing card companies’ costs and resulting in them taking a tougher line with travel agents

ABTA chairman John McEwan said: “The ABTA board wishes to reinforce the confidence that customers enjoy when booking with ABTA members.

“If certain companies don’t want to be a part of that, it is a matter for them.”

ABTA’s proposal will be discussed at an extraordinary general meeting on October 2. It will mean that bed banks in ABTA will have to pay back customers if an ABTA agency fails, even if it has yet to receive money for the booking.