Holiday firms resign from ABTA

Holiday firms resign from ABTA

Love Holidays also now resign from ABTA

17th Sept

Love Holidays has followed On the Beach in resigning from the leading travel trade association.

Both are unhappy about Abta’s insistence on full refunds for package holidaymakers booked to destinations such as Portugal that are placed on the UK government’s no-go list.

A spokesperson for Love Holidays said:

“The Covid-19 pandemic has caused unprecedented challenges for holidaymakers, which have been exacerbated by frequent changes in travel guidance issued by the UK government.

The current package travel legislation was never designed to deal with disruption on the scale we have seen since March 2020.

On the Beach online travel agency has resigned its membership, taking its brand with it.

The UK’s leading online travel agent (OTA) On the Beach has resigned from Abta over the association’s policy on refunding customers when the Foreign Office advises against travel to a destination.

The Abta board affirmed the association’s longstanding policy that Foreign Office (FCDO) advice against all but essential travel requires members to cancel bookings and offer customers full refunds last month.

It did so after On the Beach and two other OTAs declined to refund customers the flight element of package bookings to Spain unless the airline had cancelled the flight and made a refund.

A spokesperson for On the Beach said: “The travel industry is facing unprecedented challenges, and changes are inevitable as businesses and trade organisations adapt.

“On the Beach has been an Abta member since 2004, however the current circumstances have presented difficult decisions and different legal interpretations on complex matters.

“As of late last week, On the Beach and have informed Abta that they will resign their memberships.”

“On the Beach and package holidays continue to be financially protected by the Atol scheme and our ring-fenced trust account.”

A spokesperson for Abta said: “We’re sorry On the Beach has resigned as a member following ongoing discussions about refunds due to customers when the Foreign Office advice changes to advise against all or all but essential travel to a destination.

“We recognise that the widespread imposition of advisories against travel places many Abta members under enormous pressure regarding refunds.

“But Abta has consistently maintained that the underlying obligation to refund remains, as has been the longstanding practice of the travel industry, and this has not changed as a result of Covid-19.

“Abta believes this is important to ensure consumer confidence in the package holiday market.”

In a statement to customers in August, On the Beach chief executive Simon Cooper said: “Abta is an industry body of which membership for travel businesses is not mandatory.

“It is not a regulator or a lawmaker. Industry practice, mainly driven by Abta’s historic guidance, has been to treat the FCO [advice] as a trigger for full cancellation and refund rights for customers.

“Industry practice is not law. It is something which can and should change and evolve over time and should certainly change in response to this highly unusual situation.”

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Both companies are still ATOL Protected

What does an Atol protected holiday mean?

By law, every UK travel company that sells package holidays and flights is required to hold an Atol certificate, which stands for Air Travel Organiser’s Licence.

If a travel company with an Atol certificate ceases trading, the scheme protects customers who have booked package holidays with the firm, making sure they don't get stranded abroad or end up out of pocket.

It's designed to reassure consumers that their money is safe, and it helps customers if their travel agent goes bust 

Atol protection doesn't apply if you buy your flights directly from your airline.

And flight-only bookings through a travel agent are not always protected under the scheme - so make sure you always ask.

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