Mayo continues fight over consumer protection
TravelManagers is continuing to take the fight to the Australian Federation of Travel Agents after claiming the industry body has failed to address key questions relating to the travel accreditation scheme (ATAS).
Barry Mayo, chairman of the home-based group, acknowledged that while ATAS “is the future”, he described the current plan as “flawed” with the potential to weaken the image of retailers.
Mayo referred to recent comments made by Westbury in which the AFTA chief executive defended the scheme and voluntary nature of the insolvency insurance – something Mayo believes should be compulsory.
“AFTA tends to generalise and criticise with the absence of addressing the specific concerns so we have little choice but to continue to raise these concerns in a public forum,” Mayo said.
He also accused AFTA of treating the concerns of TravelManagers as “baseless and in effect trivialising the issue”.
Failing to make insurance mandatory will result in the entire industry being tainted in the event of a collapse, an issue AFTA has refused to address, Mayo said.
“However it will be the small to medium size travel agents who have the most to lose if publicity results from travel agents defaulting and not providing services and products that consumers have paid for.
“AFTA has also said the scheme is future proof. How can it be future proof when AFTA is on record saying the scheme will change later if the absence of consumer protection ….results in bad publicity and makes [change] necessary.”
“TravelManagers’ view is that the beginning of the end for small businesses will be the collapse of other travel agents resulting in consumer losses which will tarnish the integrity of all travel agents.
“AFTA has also said the scheme should be launched and given the opportunity to succeed. It does not make sense to launch a scheme that is flawed and puts travel agents’ businesses unnecessarily at risk.”
Mayo also stressed that AFTA “should not be unduly influenced by large travel companies” who do not want compulsory insurance.
“AFTA has a responsibility to all travel agents,” he said. “The possibility of a large travel company backing its brand and marketing cost against the cost benefit of insolvency insurance should not be allowed to compromise the effectiveness of ATAS and put the rest of the industry in jeopardy.”
Accreditation general manager Gary O’Riordan said AFTA received letter from CT Partners, of which TravelManagers is a member, on Tuesday night.
“This followed a briefing I conducted with that group last Thursday,” he said. “AFTA is at present considering its response.”
The ongoing dispute comes as Flight Centre confirmed it will join ATAS when it launches on July 1.
Email the Travel Weekly team at traveldesk@travelweekly.com.au
accrediation scheme afta atas barry mayo travelmanagersLatest News
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