TTA CUSTOMER PROTECTION
The Travel Trust Association was formed as a non-profit making organisation to provide total consumer protection at much lower costs than existing bonding arrangements. The scheme that operates is a Trust Account backed by a fidelity insurance which covers each passenger up to £11,000 (The insurance is underwritten by AIG Europe Ltd, members of the American International Inc. Group who have assets exceeding US$100 Billion).
What is the Travel Trust Association?
The Travel Trust Association is a Trade Association. The Travel Trust Association is designed to regulate its members and to make consumers, media and other established institutions aware of the protection afforded by TTA Members
How does the Trust Account protect the consumer?
All funds received by a TTA Member are placed in their Trust Account. Where the TTA Member acts as an Organiser, as defined in the Package Travel Regulations, then the money received may be released once the return date has passed. If the package includes an airline ticket and that booking has been placed by the TTA Member with an ATOL holder, then the funds may be released to that ATOL holder. Where the TTA Member acts in a strict retail capacity selling a package for a commission or selling a seat only for commission, then the money may be released upon the ATOL holder demand, as the ATOL holder will be responsible for providing the consumer with financial protection.
What if the money isn't banked into the Trust Account?
The TTA has a unique product called the Travel Protection Plan. It provide fidelity insurance of up to £11000 per passenger on all funds accepted into Trust by a TTA member. This means that if the Trustee, the TTA Member, the employees of the TTA Member, the TTA or any third party fail to deposit the money in the Trust Account or remove it from the Trust Account improperly the Travel Protection Plan will pay the sum paid by the consumer.
Don't I need an ATOL for this?
The current CAA Regulations are clear, if you offer or advertise air carriage for sale in the UK you are required to hold a valid ATOL or act as the agent of an ATOL holder or the agent of the airline. Proposed changes to the CAA Regulations seek to eliminate the idea of agency of the airline. Unless you are purchasing tickets directly from a charter or scheduled carrier i.e. the Airline then you may be able to comply with the CAA Regulations by becoming and acting as the agent of an ATOL holder as an exclusion and adding it as the legal basis for holding an ATOL. This means that if the carrier or airline is willing to contractually obligate themselves to the CAA as being financially responsible for the ATOL then the CAA may issue an ATOL on that basis. As the agent of an ATOL holder you will be required to pass on the documentation of the ATOL holder to the consumer in accordance with the CAA Regulations. This may be more cost effective than acquiring your own ATOL, for small to mid sized companies. If you are going to conduct an extremely large Tour Operation then we would advise that you get an ATOL or if you purchase directly from the Airline.
Who can join the TTA?
Membership is open to all Travel Agents and Tour Operators who wish to operate a "Trust Account" in accordance with TTA Guidelines.
What is a Trust Account?
A Trust Account is an escrow account, or client account. A simple current account can be opened at any bank's local branch and by identifying it as such it becomes the Trust Account. The Trust Account acts as a conduit to hold funds on behalf of all parties until the services are provided or someone else becomes responsible for the protection of those funds. Each TTA Member has a Trustee who authorise in conjunction with the Member the release of funds from the Trust Account.
The TTA will give you details of banks, which will be able to set this up quickly and in accordance with TTA guidelines.
Who is the Trustee?
The Trustee is a person appointed by you, who has been approved by the TTA. The minimum qualification for approval is as follows: The individual must be either a Banker acting on behalf of the Bank, a Solicitor or a Certified Accountant. Solicitors and Accountants must be members of a firm, sole practitioners are unacceptable, that has been practising for three years or more. Accountants maybe from the firm that does the auditing, but in order to avoid a conflict of interest separate individuals within the firm must act as Trustee and Auditor. The TTA have a list of Approved Trustees who already have a system in place to manage a TTA trust account. Please see trustee details.
Why should you join the TTA?
By operating a Trust Account you will meet the UK and EC regulations regarding travel and package holidays. Also many suppliers require their agents or purchasers to provide financial protection. The TTA is the only Trade Association that recognises and administrates Trust Accounts and is able to provide 100% financial security to both consumers and principles or suppliers of its members.
If you have any further queries, please don't hesitate to get in touch - 08700 360 360