As the recession starts to bite, the financial services industry is starting to reconsider its risk options and increase its charges. Financial institutions in the travel sector are no exception to this and many agents are finding it increasingly tough to obtain a bond at a competitive rate. For ABTA Members conducting retail activities there is another option, the Travel Agents Bond Replacement Scheme “TABRS”.
TABRS is available to ABTA retailers who have been in membership for at least three years and have a relevant turnover of less than £50 million. Apart from the competitive annual cost of a premium, TABRS has the exceptional added benefit that unlike bonding it does not require Members to provide security. ABTA set up the scheme in the early nineties following the Gulf war, a time when the industry was also hit by difficult trading conditions and escalating bonding costs.
Mike Monk ABTA Head of Finance said “ TABRS has been running very successfully now for almost 20 years. Although it isn’t appropriate for all, it is a viable option for the majority of ABTA retailers and I’m confident that in the current climate many more will take advantage of this tried and trusted option”