HISTORY OF ABTA

The first ABTA convention is held in Brighton.

ABTA has held a convention almost every year since 1951. In the 1950s and 1960s the convention was held in the UK and, on two occasions, in Ireland. The first overseas convention was held in 1970 and, with a few interruptions, conventions have taken place in overseas destinations since then. Domestic conferences have been held from time to time since the start of the overseas conventions. They were particularly popular in the 1980s, but were dropped in the second half of the 1990s.ABTA’s convention has once been held at sea – on the MV Oriana, in 1960.

ABTA wins a considerable increase in commission from shipping companies for its Members. This is one of a number of commission improvements won by ABTA until the Restrictive Trade Practices (Services) Order 1976 rules this kind of activity unlawful.

The Association merges with the Institute of Travel Agents (ITA) to form the Association of British Travel Agents and Institute of Travel Agents Ltd. The organisation soon becomes known simply as ABTA.

The Institute of Travel Agents (ITA) left ABTA in 1972. For a short time it ran the ABTA National Training Plan, but the two organisations went their separate ways in 1978. By this time the ITA had been renamed the Institute of Travel and Tourism (ITT).

ABTA undertakes a major two-month advertising campaign, reaching 18 million newspaper readers. The campaign encourages customers to look for the ABTA logo, as “The hallmark of an authorised travel agent. He will give you a good deal in travel.”

The first tour operators are admitted as affiliated Members.

The first Code of Conduct is formally adopted at ABTA’s AGM.

ABTA’s Code of Conduct governs the relationship between Members and their customers, between Members and other Members, and between Members and ABTA. In 1972 separate Codes of Conduct were introduced - one for travel agents and one for tour operators – but in 2000 these were amalgamated into a single Code once again. Over the years since its introduction, the Code of Conduct has proved key in raising standards and averting the constant threat of statutory regulation, and has provided ABTA Members with a key advantage over their competitors, ensuring high standards of service and increased customer confidence.

ABTA’s tour operator Members set up their own tours committee.

In the wake of the failure of two non-members, Fiesta Tours and Omar Khayyam, ABTA sets up the Common Fund. Also this year, tour operators become full Members.

The Common Fund was set up to repatriate stranded holidaymakers, refund deposits, or provide alternative holidays. It was regarded as the first comprehensive nationwide consumer protection scheme ever established. In 1972 it was replaced by the ABTA Retailers’ Fund and by the requirement that all tour operators must be bonded.

Stabiliser is introduced.

Stabiliser provided additional protection for consumers, as it prevented ABTA Members from selling holidays through, or buying them from, non-ABTA members. Stabiliser proved to be a powerful sales tool and prompted a huge increase in applications for membership. In 1982 it was challenged in the Restrictive Practices Court, which ruled that it should be retained, because on balance it operated in the public interest. The introduction of the Package Travel, Package Holidays and Package Tours Regulations 1992 made Stabiliser superfluous, and so it was removed in 1993. From its introduction in 1966, nobody had lost money because of the financial failure of an ABTA Member.

Divisions between travel agent and tour operator Members lead to the establishment of the Tour Operators’ Study Group (TOSG), now the Federation of Tour Operators (FTO). The Guild of Business House Travel Agents (now the Guild of Travel Management Companies) is also formed this year.

ABTA holds its first convention overseas, in Rotterdam.

ABTA organises a postal exchange for Members, to beat the six-week postal strike. Almost 250,000 letters pass through ABTA’s Newman Street offices.

ABTA is restructured. The single Council is replaced by Retail Agents’ Council (later known as Travel Agents’ Council) and Tour Operators’ Council, both of which report to National Council. Rules about premises and qualified staff are introduced for travel agents, and tour operators are required to bond their businesses.

The value of ABTA’s scheme of financial protection is highlighted when major player Court Line fails financially – the worst crisis in the trade’s history. Other bodies hold the majority of the company’s bonds, but ABTA’s high public profile means that the industry looks to it to take the lead, and it is heavily involved in helping with the repatriation and refunding of clients. This year, too, ABTA conducts a TV advertising campaign.

At its Miami Beach convention ABTA produces its own convention newspaper and ABTAVISION – a closed-circuit TV programme.

ABTA is referred to the Restrictive Practices Court. It has already scrapped a number of major restrictions, but wants to retain Stabiliser. The case does not come to court until 1982.

ABTA takes over responsibility from the Institute of Travel and Tourism for running the ABTA National Training Plan.

ABTA agrees to spend up to £250,000 on developing a travel agency management system which will work with CRSs and the emerging tour operator systems. It withdraws from the project, following a number of problems, in 1984.

The Restrictive Practices Court rules in favour of ABTA retaining Stabiliser. Also this year, the National Training Board (NTB) is set up as a department of ABTA.

The National Training Board (NTB) was set up following the winding down of the Government-funded Air Transport and Travel Industry Training Board (ATTITB). During the 1980s over 9,000 16- and 17-year-olds were recruited to the industry through the Youth Training Scheme, administered by the NTB. The NTB was so successful that it became a major profit centre for ABTA, administering COTAC (Certificate of Travel Agency Competence), COTAM (Certificate of Travel Agency Management) and home study courses. The NTB became a separate company and wholly owned subsidiary in 1995, and was renamed the Travel Training Company. The business was sold in 2002.

The Restrictive Practices Court order leaves ABTA with 48 restrictions and prohibitions.

A new ABTA Memorandum of Association and new Articles of Association are adopted. Affiliated membership is abolished.

ABTA enlists top model Sam Fox for its advertising campaign.

The ABTA convention attracts a record-breaking number of delegates. 3,700 fly to Australia’s Gold Coast with a Members’ air fare of just £200 return.

A new logo is introduced, replacing the traditional compass.

The ABTA Benevolent Fund is established.

The ABTA Benevolent Fund, a registered charity, was established to provide assistance to people who are, or have been, employed by an ABTA Member, who have fallen on hard times – for example, when prolonged illness or an accident has left them unable to work, or when redundancy or enforced retirement has led to serious financial hardship. The Fund depends on charitable donations, and has helped hundreds of families since it was first set up.

A series of failures – among them, the collapse of the International Leisure Group (ILG) and a number of medium-sized ski operators - takes ABTA to the brink of bankruptcy as the price for keeping its assurance that no member of the public should lose money. ABTA is forced to axe a number of jobs.

A MORI opinion poll finds that 91% of the travelling public recognise that ABTA stands for financial security and quality.

Stabiliser is removed. At the same time, the ABTA Insurance Company (Guernsey) is set up to provide shortfall insurance for tour operators. The Travel Agents’ Bond Replacement Scheme (TABRS) is set up the following year.

As part of its drive to develop its role as a trade association, ABTA sets up a dedicated Members’ Information Bureau.

In an early response to the internet revolution, ABTA launches its website, ABTAnet. It also introduces the Single Payment Scheme, to handle electronic payments between participating agents and operators. At the end of the year the Travel Industry Partner scheme is launched at the convention in Istanbul.

ABTA launches ABTA Magazine.

ABTA scores a notable victory by persuading Government to scrap the two-tier rate of Insurance Premium Tax which had discriminated against the trade.

ABTA introduces its Blueprint for the Future, designed to modernise the Association. Travel Agents’ Council and Tour Operators’ Council are replaced by a single Board of Directors and a single class of membership is reintroduced.

ABTA wins its court case against airlines who refuse to pay commission on Passenger Service Charges, winning back an estimated £40 million for the trade.

ABTA wins a battle with the Treasury to avoid regulation of insurance sales by the Financial Services Authority. It launches a training and examinations scheme for travel insurance so that Members selling it can demonstrate their competence.

ABTA uncovers an internal fraud. ABTA’s President resigns when his company folds.

ABTA announces significant changes to its financial protection rules in order to reduce Members’ bonding costs and to increase control over payment of claims. Also this year, ABTA’s weekly email bulletin ABTA Today increases its frequency to twice a week.

ABTA changes its Articles of Association to enable all Members to vote for the President, changes its name from Association of British Travel Agents Ltd to ABTA Ltd, and introduces a new logo. Also this year, ABTA introduces a number of new services for Members, including a carbon offset scheme and a health and safety audit system. The TalkingTravel roadshow sees ABTA step up its communications with Members.