Insolvency insurance offers agents revenue opportunities
Agents should consider the new insolvency insurance policies that will soon become available in Australia as an additional source of revenue rather than a financial burden, according to insurance broker Gow Gates.
Speaking to Travel Today at the launch of the commercial safeguards yesterday, chief executive Chris Mackinnon stressed that, although the cost of the policies cannot be passed on, the higher cost of doing business as a result of their acquisition means that agents can pass on the outlay as an administration fee.
“This is a product that we’re selling through to the agents but the end game is for agents to be able to use it as a value add to their clients – consumer protection is the key to it but it’s a revenue stream potentially for the agents as well,” he said.
“It’s not something that’s a dead loss. To put money into the Travel Compensation Fund is mandatory, you have to do it, but that’s it – the money’s gone. But if they buy these insurance policies they can increase their administration fees and if they can sell it that way to their clients, then they can potentially earn revenue from this.”
Both Gow-Gates and UK-based International Passenger Protection (IPP) are joining the Australian Federation of Travel Agents on its latest round of transition workshops currently underway, to introduce the new policies and address any concerns.
“We know this works – it’s proven in other jurisdictions. It’s just a question of making sure we get that across,” Mackinnon said. “We will take as many phone calls and as many questions as needed to get people over the line with this.”
The company has already undertaken significant talks with many of the major players in the Australian travel landscape, and Mackinnon is confident that if they come on board, the flow on effect will trickle through the industry, encouraging others to get on board.
“But there are always going to be people that will not adhere to it, play around the edges a bit,” he admitted. “But a self-regulating industry will weed out people that don’t play by the rules.”
While he acknowledged that the voluntary nature of the new policies had caused some concern within the industry, Mackinnon stressed that those who chose to opt-in would be at an advantage.
“That becomes a unique selling points for the ones that do get it,” he said.
Furthermore, he was unfazed by the prospect of companies creating consumer protection plans of their own, insisting that he welcomed competition in the marketplace.
“But at end of the day they want proper protection and at the moment in Australia there’s only one place to go for that,” he said, adding white label versions of the scheme could be an option in order to suite the individual requirements of agency firms.
However, even if competitors were to emerge on the scene, they would not be able to offer the same pedigree of experience and success held by IPP, Mackinnon insisted.
“The product and underwriting the particular risks that we’re look at here is a piece of cake. What is extremely valuable to the market is the experience that IPP have got in the sector.”
He underlined its 24/7 airline alert service is a sign of how tuned in the company is with the industry, thanks to its 23 years of offering this product overseas and the previous 25 years’ experience of IPP managing director Brian McLean as a travel agent.
"These guys have knowledge and information that is second to none around what is going on in the industry," he said.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
accreditation afta agents atas chris mackinnon consumer protection gow-gates insolvency insuranceLatest News
Tourism Western Australia MD Carolyn Turnbull departs
Tourism Western Australia MD Carolyn Turnbull is departing the agency with effect from Friday May 10. Over the past three years, Turnbull played an instrumental role in driving growth, with one of the agency’s most significant achievements being the increase in visitor spend. Under her leadership, Tourism WA achieved a record breaking $17.7 billion in […]
DriveAway launches Brit-Euro Blitz campaign
DriveAway has launched its Brit-Euro Blitz: Explore the UK, Europe & Ireland campaign, designed to inspire travellers to uncover the beauty and diversity of those destinations during May and June. The campaign arrives amidst a surge in popularity for destinations across the UK, Europe and Ireland, with year-to-date increases averaging around 30%. Notably, cities such […]
Fly and Stay Free with the Great Southern
Great Southern’s Fly and Stay Free special offer will have travellers taking in the views along the east coast between Adelaide and Brisbane next summer. This bright orange locomotive chases the summer sun, sharing the incredible coastline with those who want to experience it by train. The journey reflects the best of Australia, from charming […]
Sober travel and TikTok guide Australian Gen Z trips
Gen Z travellers prefer to limit alcohol when overseas and have an increased reliance on TikTok when planning a trip, according to a report by StudentUniverse, the world’s largest online travel retailer for young people. The State of Student & Youth Travel Report for 2024 delved into the latest travel sentiments amongst those aged 18-25 […]
Travel DAZE Exec Agenda REVEALED: top execs to speak on airline competition
As the industry reels from Bonza's implosion, it is more important than ever to ask the big questions.
TTC: Deals are driving up demand for September trips
The latest market research from TTC Tour Brands shows interest in international leisure travel remains high for 2024, with 77 per cent of Australians over 18 still planning trips this year. Notably, 28 per cent of those travellers are eyeing September for their journeys. Europe continues to be the most popular destination, with 68 per […]
Skroo says Rex will need deep pockets to fill lost Bonza slots
The door is open for Rex, and anyone else who wants to launch a regional Aussie airline...
Sno’n’Ski Holidays unveils 2025 mega famil to Colorado!
Let the games begin - this is certainly not a famil that you will want to miss!
Walk Japan launches Kyoto: Mountains to the sea walking tour
There are two types of people, one who enjoys walking on holiday and another who enjoys sipping Mojitos by the pool.
Which destination had a 48% boost in bookings following 10 MILLION TikTok views?
Here's a clue: it's not Malabar Beach.
Asher Telford appointed General Manager of SeaLink Whitsundays
Telford has plenty of reasons to smile after SeaLink doubles down and makes him GM after buying his tourism operation.
Qantas ‘working urgently’ to fix app data leak
Qantas is looking into customer reports that passengers have this morning been able to access other passengers’ personal information on the airlines app. X user Lachlan posted that he was able log into different accounts every time he opened the app. My @Qantas app logs me in to a different person each time I open […]
Hilton Expands Presence in North Queensland with the signing of Hilton Garden Inn Townsville
Heading to a North Queensland Cowboys clash? Hilton Garden Inn Townsville is set to open, but not until 2026.
Rail Europe ANZ: making dream journeys come true
Rail Europe's running a lottery! You're not going to win millions, but you might just snag a free holiday.
Bonza’s future on knife edge
It would seem a long road back from here, perhaps a knife's edge is too much credit.
Revamped Wailoaloa Beach hotel opens as Crowne Plaza Fiji Nadi Bay Resort & Spa
Crowne Plaza Fiji Nadi Bay Resort & Spa is open and ready for bookings after the first phase of a multi-million-dollar transformation. Part of IHG Hotels & Resorts’ premium collection, the transformation has seen the completion of 106 guestrooms showcasing contemporary interiors reflective of the premium Crowne Plaza brand and is a first for the […]
Nielsen Data reveals brands spending big to attract Aussie tourists
Trip A Deal, Virgin and Ignite Travel walk into a bar, blow their cash on travel advertising instead of the pokies.
Kamalaya Koh Samui clinches clutch of wellness awards
Kamalaya Wellness Sanctuary & Holistic Spa has so far clinched five prestigious awards in 2024, including being inducted into the ‘Hall of Fame’ at the World Spa & Wellness Awards in London. Founders of the Koh Samui sanctuary and spa John and Karina Stewart expressed their heartfelt gratitude for the awards. “We are profoundly honoured […]
Jetstar offers 200,000 return for free flights to celebrate 20th anniversary
Jetstar hits 20 and everyone else gets the presents with free return flights to domestic and international destinations.
Amora Hotels & Resorts set to double APAC portfolio, announces new Sydney office
Staff in the new Sydney office have been welcomed by a week of rain on the forecast.
RIU opens Chicago hotel and rooftop bar a few steps from the world-famous Magnificent Mile
Rooftop cocktails hold a dear place in your heart? Look no further than RIU Chicago.
How can travel agents best sell cruises? Uniworld’s Alice Ager tells all: Travel Weekly TV
Agents, you don't want to miss this. Yes, that's the case with everything in the newsletter, but we really mean it here!
South Africa bookings are back in action
It's a wrap! South Africa in the news with resumed flights, film fest and booking tech.
Agents’ chance to score free spot on Intrepid trip to Antarctica
This is the trip of a lifetime, even if you are scared of the cold!
Bonza nosediving amid mass cancellations and reports of repossessed planes
Bonza's days appear to be numbered as the low-cost carrier today announced mass cancellations around the country.
Amy Poehler joins Vivid Sydney event
Oh Joy! Hit comedian Amy Poehler will make an emotional appearance at the Sydney Opera House for Vivid.
Pullman Sydney Penrith ties up with Trilogy Hotels, announces new GM
The crew from Trilogy hotels doing their best impression of the Penrith front row here.
Linkd appoints Carolyn Nightingale and Lawson Dibb to new roles
Linkd Tourism sings praises of Carolyn Nightingale and dubs Lawson Dibb as Kyushu Tourism Office guru.
Celebrity Ascent makes its European debut
Choosing to cruise this northern summer? Celebrity Ascent promises to raise the bar.
NCL opens sales for Norwegian Sun’s APAC debut, announces 14 new voyages
It was to be 13 new voyages we heard, but given the numbers unlucky nature, an extra had to be thought up.
Inside Travel Group appoints Tom Welland Global Trade Marketing Manager
Heidi's Tom Welland heads to Inside Travel Group as its new Global Trade Marketing Manager.
Federal Government rolls out $1.4m program to promote careers in tourism across regional NSW
The Government taking a break from some of its pointier issues with some work in our incredible industry!
Australian visitors to South Korea surge
Japanned out? Aussies are adding South Korea to their bucket list.
G Adventures celebrates Dr. Jane Goodall’s 90th with new wildlife-focused trips
Fancy yourself as a bit of a conservationist? Put your skills to the test on the Jane Goodall collection.
Virgin Australia says suspended flights to Bali result of Boeing MAX delays
If only we had a company like Boeing to blame our mistakes on. Any takers? Get in touch!
Airline Review: Singapore Airlines Business Class – A380-800
The iconic Singapore Airlines' A380-800 is in a class of its own - business class that is.