I have had friends that have lost big bucks just because the travel company goes belly-up or the airline stops flying. I sure am glad that I travel independently and this is the reason why.

It’s ashamed trying to save money on package holidays but ended up spending more money…This is about the business ethic of the agency where they should be fully responsible for the consumers’ hard earned money. It happened to one of the agency here in Malaysia which has gone bust and the owner of the agency dissappeared overnight, leaving only his staffs and sales team to answer to all their 100+ heart-broken customers….

Abta doesn’t mean a lot protection-wise nowadays, what customers need to look out for is a valid ATOL number. This ensures one will get a refund should a travel company go “belly up”. Also, paying by credit card will ensure a swift refund.

Once upon a time there was a place where travel was booked and protected, Agencies and tour companies had to follow very tight rules and customer service was enforced. Government Ministers stood up and praised it held it up as a shining light of the way consumers should be treated. Other governments came from all over the world to look and learn from it. The public grew confident in travel and knew there money was safe.

Then the big brother came along and said this is great, let’s make other countries do the same and went back over the water and passed a regulation. The regulation arrived in the country and government passed a law making the old way illegal and brought in a new way. But this was not as complete as the rules before. But no one shouted and the law went though and people where not aware.

Nasty people saw the holes and knew they could make money and millions where lost. Others saw it a way to make money and sell things cheaper some made money others went broke leaving people out of pocket.

Good people cried this is unfair it costing us millions, but no one listened, in the end good people got fed up with crying out and changed there rules so they could do the same as others.

Welcome to UK 2008.

You’re welcome!

I wouldnt ignore abta membership completely, it does lay down some guidelines for reputable agents, but it’s getting to be a toothless old beast nowadays (my opinion, of course) I would definitely agree consumers need educateting on ATOL, if only so they know how to prtect their hard earned cash.

Darren

Before 1992 the regulation was very tight, this was caused by a rule call the stabilizer. This meant that ABTA travel agents could only deal with ABTA tour operators. (There was also alliances such as BCC, PSA, etc. when there members where treat as ABTA members for this rule) ABTA at this time covered all but flights and extras (car hire insurance and other such extras). Everyone followed the rules or where thrown out, fines of £100,000’s where leveled for breaking the rules. Example Thomas Cook earned £2.7 million in fines in one year on customer service issues relating to one department alone. Financially ABTA paid out for everything covered (even in those days the ATOL system covered air holidays as it does now). ABTA also paid out at times they where not liable to, to retain the schemes public image.

Then in 1992 the government brought in the package travel regulations and made the stabilizer illegal. But all they really did was extending the laws that where in place and allow other organizations to set up. Most of these are very good, such as the TTA. But also left a hole, which meant that if you sell a flight and hotel separately then there is no cover. At first ABTA tried to cover this along with frauds, in the end it cost too much. So they no longer cover this type of sale or frauds. (Putting it simply).

To add to Agent Q comment, ATOL does not cover these types of sale either. ABTA still enforces customer service issues just not as well as they used to. All ABTA members are vetted and they do throw out members that do not comply (since June this year 11 companies).

I am even more confused now.

So if a travel agency sells me a holiday which is not a package like the example Darren gave. The hotel chain or airline goes bust and because the agency did not book me a package I don’t get a penny back, unless I paid by credit card?

That is outrageious. In this example surely the travel agency (if it still existed) should be hung, drawn and quartered? So even if you book a holiday with a travel agency that’s an ABTA member you still might be shaffted.

Great. They wonder why we book and organise our own holidays, least it’s transparant, you do it on your own risk. With a travel agency you have no idea until it all goes wrong.

Rohan

To confuse your more, there is more protection with agencies than with out. Most cover what they sell, but the only way to be sure, is to look or ask.

Our simple way… if you get one price for everything, one invoice then you’re covered. Separate prices not may not be covered.

If you make a purchase from our agency for example everything we sell is covered in the same way it used to be, we provided insurance to do this.