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Association of British Travel Agents

More No-frills airlines booked by travel agents, but Financial Protection is not in place

Fifty per cent more package holidaymakers are booking no-frills flights through travel agents than in 2002…

Fifty per cent more package holidaymakers are booking no-frills flights through travel agents than in 2002 , the 2004 Holiday Survey by MORI for ABTA has found.

Thirty-two per cent of package holidaymakers told researchers that they had taken at least one no-frills flight in the last 12 months and of these, 21% had booked them with their travel agent.

Because of the huge numbers of no-frills airlines entering the market consumers have used agents to quickly find the best deals in an increasingly confusing market place. A service fee is then added to the price.

However, ABTA is concerned that over a third of the passengers who have booked no-frills, using all distribution methods, have not used a credit card and therefore could be financially vulnerable if the airline went bust.

When questioned about a charge of between 50p and £2 per ticket to protect customers from being financially exposed if an airline collapsed, eight out of ten agreed that it would be a good idea.

Current consumer protection covers customers who have either: booked through an `ATOL` holder, used a credit card and paid more than £100, or taken out insurance through a travel agent.

Travellers who book direct with an airline with a debit card would not be financially protected and at least eight airlines have gone under in the last four years, with predictions from within the airline industry that there will be more failures this winter.

“Our high street members are telling us that they are booking more no-frills airline tickets for their clients than ever before,” said Ian Reynolds, ABTA`s Chief Executive, “but we are still concerned that consumers are not provided with comprehensive protection when it comes to booking these and other scheduled airlines. This poll proves that customers would be willing to pay for their own protection and so we hope that the Government will do the right thing. If it does not, ABTA is working on an insurance policy as an alternative – and the demand for this is most certainly there.”

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Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.

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