Deregulation Is Dead! | Long Live Regulation! | The Urgent Need for Travel Financial Protection!
Since the latter part of 2009 we have all watched with interest and sorrow whilst the toll of economic collapse takes place around us. The events surrounding the fall of the latest travel company, Globespan, provides an interesting window into the workings of travel companies, so-called ‘regulation’ and the plight of the holiday consumer and their complaints.
The Independent’s article (10/1/2010) highlights the battle royale now being played out before the Royal Courts of Justice. The article reveals the deep concern over the monies apparently owed to Globespan and how that concern has now spread to The Serious Fraud Office!
The current argument surrounds the accusation by the administrators of Globespan that a card processing company has witheld £35m from Globespan, at a time when it needed cash in the bank. The administrators for Globespan have asked the High Court to place the processing card company into administration, but this has now been rejected by the Judge, but he has asked for proof that that said £35m exists! In reading the various articles speculation is rife and this is probably just the beginning!
In amongst this mayhem are 5000 Consumers who were stranded abroad by the collpase, some 100,000 who had booked future arrangements and out of these numbers apparently only 1100 (stranded abroad) & 27,000 (pre-bookers) would receive refunds from the ATOL scheme, because those holidaymakers were deemed to have booked a ‘Package Holiday’ and of course we must not forget the 800 members of staff who lost their jobs just before Christmas. These are staggering statistics, each with their own story to tell! And now the legal system is involved, who will be the winners there I wonder?
We have consistently raised the advices that Consumer’s should beware, take the time to study who you are buying your products from, make sure your money is properly protected in a recognised scheme. The free market principles we see from the Globespan collapse illustrate very clearly why the debate on the future of the Package Travel Directive is vitally important – there can no longer be a fudge on this important issue.
2009 has been a year of travel company collapses a plenty. I say to government, how much more must be endured by the long suffering Consumer? Why should the Consumer pay ‘extra’ for protection? Why must an industry which handles millions of pounds taken from Consumers continue to ride the ‘deregulated’ route – has the banking crisis taught us nothing? It is the duty of government to cause an industry to fully subscribe to the principles of regulation and a self-funded scheme to protect Consumers cash! It is also the duty of government to ensure , irrespective of whatever industry it may be, that where there is large scale handling of Consumer money, companies and their directors must be vetted and regulated as fit and proper companies – is that not the true mark of consumer protection?
Tags: ATOL, Holiday Financial Protection, The Package Travel Regulations
HTW has noted that amongst the submissions to the Committee on Toxicity (COT) it has been suggested that the symptoms highlighted by crew and passengers were akin to the condition of hyperventilation.
HTW has for many years received reports from concerned holiday makers or independent travellers as to the safety of their aircraft, ship or boat, train or road transport.
