ABTA renews call for financial safeguards
In the wake of the dramatic collapse of XL Leisure Group, Mark Tanzer, the chief executive of ABTA, has urged the Government to implement a reformation of financial protection.
Tanzer began by expressing his sympathies for those caught up in the sudden failure for XL, both those stranded abroad and those who may be affected in the future.
ABTA’s members (including Thomson, First Choice, Thomas Cook and Virgin Holidays) are collaborating closely with the CAA in an effort to return stranded travellers back to the UK.
Tanzer explained that the failure was down to two factors that were having a dire effect on travel firms: high fuel prices and tight lending conditions.
However, amid this pressure demand for travel remains strong, and, Tanzer added, the industry has proven historically resilient.
XL’s business mix has highlighted certain inconsistencies regarding traveller protection, with those buying package holidays covered by the ATOL scheme but those who booked online lacking protection.
Tanzer has called on the Government to accept demands for a universal protection scheme for all outbound flights, so that this situation does not recur.
Category: Insurance News, Travel Insurance News
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