29 Nov

ABTA announces trust accounts decision

ABTA is to begin a process of allowing into Membership businesses who choose to protect their customers’ monies through particular trust accounts.

The ABTA Board has agreed that ABTA should open discussions with potentially-suitable trust account providers, with the aims of helping ABTA Membership to become more inclusive and to give Members more financial protection options.

ABTA will require confirmation that any trust arrangements operated by tour operators meet the requirements of the Package Travel and Linked Travel Arrangements Regulations 2018.  For travel agent Members, ABTA will need confirmation that the monies are held in the trust account until released solely on instruction from the principal supplier.

ABTA itself will not be managing or financially protecting trust accounts and will not be responsible for dealing with claims arising from any company failure. 

Rachel Jordan, ABTA’s Director of Membership and Financial Protection, said: 

“Our recent dialogue with Members, including in developing our response to the CAA’s proposals on ATOL reform, shows a strong desire for Members to have flexibility in the form of financial protection they choose to use. This move allows us to provide that greater flexibility, while continuing high and robust standards for ABTA Membership, to the benefit of both our sector and our Members’ customers.”

Further information for ABTA Members is available in the Member Zone.