Recent travel firm failure highlights trust account operation, says Towergate
Following the sad news of a south coast operator’s sudden and unexpected closure, CTA partner Towergate Travel is reminding operators about the changes to trust accounts which were included in the last year’s new Package Travel Directive.
The new regulations continue to allow third party-administered trust accounts as an acceptable way of protecting consumers payments, as well as providing alternative repatriation arrangements in the event that an operator fails whilst the consumer is on their trip.
However, Towergate points out that many trust account administrators do not have the resources to make these alternative repatriation arrangements, and if there is a shortfall in funds remaining in the trust account, consumers may not receive a full refund. To ensure that the consumer is adequately protected July 2018’s PTD required each trust account to carry insurance cover against a possible shortfall and for the alternative repatriation arrangements.
“Ultimately we all want to make sure that, whatever sector we operate in, the consumer enjoys the best experience, is treated fairly and is as protected as possible,” says Towergate. “If you operate a trust account and are not sure whether it complies with these new requirements please feel free to give Towergate Travel a call. We can take you through your options with a view to finding the one which best suits your demands and needs, whether that be adding in the shortfall and repatriation insurance covers or simply looking at an alternative way of complying with the PTD.”
Steve Browne 07595 892 526