ABTA has drafted advice for its Members clarifying contractual and financial protection issues when they are booking through accommodation only suppliers, also known as “bed banks”. With increasing numbers of ABTA Members using bed banks rather than selling traditional packages, it is essential that they are aware of who their clients are in contract with and whether the bed bank offers financial protection against its failure. 

Bed banks generally provide their services in three ways, acting as principal, agent or supplier. All three have separate and important implications for travel companies. The company the client is in contract with will be responsible to deal with any complaints or potential compensation claims.

Mark Tanzer ABTA Chief Executive said “Bed banks have opened up new sales opportunities for ABTA Members and have been one of the great success stories of recent years. However it is essential that ABTA Members are fully aware of the legal and financial implications when they are using bed banks so that they can they can properly inform their customers and avoid potential unpleasant surprises both for customers and the Members themselves” 

The guidance is available to ABTA Members as part of the Business Support Manual which is available on the Members section of www.abta.com