By Darren Cronian on Saturday, March 29th, 2008

Earlier in the year Leisure Direction Limited went into administration. Consumers were confused because ABTA had removed the membership page, and when the news broke I was surprised how little information was made available to consumers.

ABTA’s handling of administration is appalling

ABTA wrote out to customers but a large number of people didn’t receive it and were left worrying about their holiday, not knowing who was taking over their booking. Administrators Menzies set up a deal with tour operators with a view to customers re booking with them.

In stepped a number of travel companies who rescued the holidays by taking control of the consumers holiday. I was impressed by companies like French Freedom who joined the discussion on travel rants and helped relieve consumer worries.

So one has to ask, what role did ABTA play, other than send claims out. I’m led to believe that two months on some travel consumers are still waiting for their refund and are left without an holiday. Helen Saunders received a letter informing her nine weeks after the company went into administration.

Pete Saunders contacted Brittany Ferries who told him that his reservation was still active but of the £341.00 cost, Leisure Direction had only paid them a £25.00 deposit. They also rather strangely said that the travel agency were the only ones who could further, or amend the booking.

You only have to read the comments left by consumers to see how badly this was dealt with but I was so pleased to see consumers and travel companies (even ex-Leisure direction staff) helping each other out in a crisis, it’s just a shame that ABTA couldn’t have dealt with the situation better.


Related Posts:





Subscribe to RSS Submit to StumbleUpon Bookmark page

5 responses to “ABTA’s handling of administration is appalling”

Lee Harrison (owner Select World Travel) | 30 March, 2008 at 9:55 pm

Quote”ABTA wrote out to customers but a large number of people didn’t receive it and were left worrying about their holiday, not knowing who was taking over their booking. Administrators Menzies set up a deal with tour operators with a view to customers re booking with them”
If it were so simple Darren. When a Company goes under or into liquidation etc, then it may be in another company’s interests to assess the potential of taking on the original company’s bookings by a “Deed of assignement” this has to be agreed by the Partiesinvolved including the Customer, Abta etc. This may involve the Customer assigning his original booking to the new operator, and various options involving payments and re-claiming or assigning the payments to the new operator. Each Case of liquidation or company going under can take time depending on size of company, time of year etc.
In My experience as a Travel Agent, and luckily in only a very few cases when a Tour Operator has failed, the systems designed by TTA, ABTA and ATOL have worked effectively, efficiently and warrented claims paid very quickly.
Also it’s worth mentioning the Superb Work and efficiency of all of the Bonding elements in the travel industry that Repatriate clients in time of Operator failure, Natural Disasters etc etc.
Of Course there will be isolated cases where by Clients have delays on claims, but unless you have access to all of the Dossiers from both parties and knowing the content of each and every claim, then I find it hard to say that Abtas handling of the affair is appalling?
I Presume that Pete Saunders had made a booking with a Travel Agency? In which case yes Pete would have to contact them as his contract is through them and the Travel Agency is acting in his interests as an agent of Brittany Ferries, who in turn have accepted the booking from ABC Travel and all of their dealings is with ABC travel and not Pete Saunders. This is where having placed your booking with ABC Travel they should be the ones doing all of the Donkey Work and sorting out the problem on behalf of the client.

Joseph | 31 March, 2008 at 7:39 am

But ABC travel is in administration so how can they now deal with the booking. Sorry but I do not agree with everything you are saying and I would agree that ABTA have dealt with this poorly.

p.s. I am a customer of LD, who supposedly went into administration, but are not telling new customers this when they are booking.

Also LD are no longer ABTA registered.

Lee Harrison (owner Select World Travel) | 31 March, 2008 at 8:46 am

I think Joseph it is important to get the facts straight. In Darren’s post he quotes above “They also rather strangely said that the TRAVEL AGENCY were the only ones who could further, or amend the booking”.
I’m not sure on your point when you say LD who supposedly went into administration are taking new Customers etc i.e “New Bookings”. This could only be done if a new company had formed.

My response is based on this ABC TRAVEL is the TRAVEL AGENCY and LEISURE DIRECTION is the Tour Operator. I have seen too many instances on Travel Rants where the two are confused and blame given to a TRAVEL AGENCY as opposed to TOUR OPERATOR.
Perhaps Darren can clarify if he meant TRAVEL AGENT or TOUR OPERATOR ? It also amazes me how many people visit our TRAVEL AGENCY and there Phone goes off ” Hang on a minute dear, I’m in the Estate Agents”
Perhaps Darren could do an in depth research into What constitutes a bond and to what level each customer is protected under each level. Quite often ( and on Travel Rants!) The Terms Atol, ABTA, TTA are mentioned without the explanation being clarified. I.E.ATOL refers to bookings that have a Flight element involved.
ABTA’s Protection scheme does not, and has recently changed, which also means that depending on the type of holiday booked, Package involving Self-Drive, Ferries, Hotel etc or Self- Packaged with different elements being booked with more than 1 supplier.
Just to add to the fun, New Legislation due to come into force tomorrow (April 1st) is already causing concern as written in this recent article from Travel Weekly.

The travel trade is not ready for the £1 ATOL levy on holidays due to come in on Tuesday 1st April to fund consumer financial protection.

That is the alarming conclusion of the Association of ATOL Companies, whose members sell 80% of ATOL-protected holidays and flights.

The £1 ATOL Protection Contribution will be added to protected holidays from April 1, largely replacing the current bonding scheme. However, new licence holders and those holding ATOLs for less than four years will need bonds, as will companies that have changed their business or that the Civil Aviation Authority considers a risk.

In a statement, the AAC said: “Many businesses will be walking blindly into the scheme. The APC will subject ATOL holders to greater investigation and reporting procedures.”

AAC chairman David Mortimer said: “We have been taking calls from worried members and non-members who will be expected to have effective business systems to ensure compliance.”

He added: “We are concerned the plan is insufficiently clear, particularly in relation to the need for bonding. Members do not feel in possession of all the facts. We do not believe everyone has [the necessary] business systems in place.”

However, the CAA is unaware of anyone unable to obtain a bond, according to consumer protection group deputy director David Moesli. He estimated the cost increase for bonds at the top end of the market at 1%-2%.

Yet AAC legal adviser Alan Bowen said the cost of bonds had doubled in some cases. “Most bond holders now pay 3%-5% of the value of a bond, but there are obligers looking for premiums of 6%-10%.”

Paul Mclean, director of bond provider International Passenger Protection, warned: “With fewer [bonding] providers available, there will be unnecessary panic to obtain bonds.”

Mortimer added: “Our real concern is over the September ATOL renewals.”

By Ian Taylor.

I do Hope that the Clients involved with LD are sorted out quickly, and would re-iterate that generally when a claim is involved, and as long as the correct paperwork is involved, and that the claim is valid, then normally clients are re-imbursed in good time. I Would suggest that if People feel they have undue delay, to contact either the administrator or the Association they have been informed to claim from.

Rohan | 1 April, 2008 at 9:05 pm

Lee

You have just written an essay. I fell asleep after the first paragraph! haha

Joking mate, you have a good points but reading the comments some people were obviously badly mistreated by all concerned.

darryl Skelton | 16 April, 2008 at 11:47 am

Joining the comments here maybe a little late i know, but in my opinion ABTA did not handle this all that well.

We are ABTA members and approached the association for information on the situation. At 4 pm on Tuesday the 5th February, we were told that ABTA were not aware of any issues with Leisure Direction and all was well.

As a creditor of Leisure Direction and following discussions with Menzies and ABTA it is apparent that when giving out this information meetings and discussions had taken place 4 or 5 days earlier involving senior staff at ABTA and the administrators.

I was and still am concerned that i was mis-lead by my own trade association. I had discussions with senior staff at ABTA when I shared my views on being mis-lead. There response was that they cannot do anything other in these situations. I agree it is a very difficult and delicate time, but I do feel our association could come up with a better solution than mis-leading its own members!

Please post a comment