Abta agrees low-cost bonding after Atol reform

Abta agrees low-cost bonding after Atol reform

Lowcost Travel Group is understood to have completed negotiations on a substantial reduction in its Abta bonding, days after its chief executive threatened to quit the association last week.

Travel Weekly has learnt the online retailer and trade supplier has agreed a deal that has seen its £2 million bonding costs reduced by around 75%.

Abta would not confirm the deal but a spokesman said bonding requirements were based on risk assessments which take account of other protection schemes such as Atol, and no exceptions were made for any member.

The spokesman said: “In a year when we’ve seen major changes to the Atol scheme, there will have been changes to a number of our members’ businesses and we have consequently adjusted their bonding arrangements.”

Although a deal is thought to have been agreed after Evans’ outburst last week, Abta director Noel Josephides denied there would have been a link.

Josephides was not aware of the circumstances involving Lowcost’s bonding, but he said: “This will have nothing to do with ‘he who shouts loudest’. A process would have started months ago.”

Although Abta has not changed bonding for existing members it published less-stringent requirements for new members last month.

This will see cases assessed on an individual basis and could see bonding for firms reduced by up to a third in the first three years.

Responding to Evans’ claims, Abta chief executive Mark Tanzer said: “The CAA wants the industry to take back consumer protection. I don’t know how the industry would operate if you took us out. It would be a catastrophe.”

Evans could not be reached for comment.


This is a community-moderated forum.
All post are the individual views of the respective commenter and are not the expressed views of Travel Weekly.
By posting your comments you agree to accept our Terms & Conditions.

More in News