PICTURES: ISTOCK
NEWS
Contents
14.11.2008
NEWS
World Travel Market 7
Competition 12
Insight 16
Analysis 22
OPINION
Julia Lo Bue-Said 25
LETTERS 27
MAUREEN 28
WEEK IN PICS 30
HOW TO… 33
MYSTERY SHOPPER 34
DESTINATIONS
City Breaks 35
Turkey 45
AGENTS WIN
TW AWARDS
Find out who
took the
honours at the
Travel Weekly
Southeast
Agent Excellence
Awards,
which were
held at The
Troxy in central
London. Go
to www.
travelweekly.co.uk
and
read next
week’s issue.
2 | Travel Weekly | November 14 2008
Agencies’ low take-up of FSA authorisation could spell trouble
‘More clients will
travel uninsured’
Ian Taylor
ian.taylor@bi.co.uk
Only four travel fi rms have
applied for authorisation by
the Financial Services Authority
to sell travel insurance from
January 2 2009 and there is no
indication how many may stop
selling insurance as a result.
The deadline for applications
is today.
The FSA will regulate all
travel insurance sales from the
start of next year, replacing the
existing regime that allows travel
association ABTA to oversee
its members’ sales of insurance.
The change means consumers
will no longer be able to buy
insurance when they purchase
a holiday unless their highstreet
agency, tour operator or
online retailer acts as the
appointed representative of an
insurer or insurance broker.
No one at the FSA or ABTA
knows how many retailers and
tour operators will have appointed
representative status,
but ABTA expects most brokers
and insurers to limit the number
of fi rms they appoint to
fi ve – as more brings an added
Calls for less talk, more action
Travel fi rms that talk most
about sustainable tourism
often do least to behave
responsibly, according to a
leading tourism academic.
Leeds Metropolitan University
principal lecturer in tourism
management Xavier Font told
visitors at World Travel Market:
“Companies that constantly
speak about corporate social
responsibility are unlikely to
be practising it.”
Monk: Travel insurance must
be off ered at point of sale
He called on fi rms to focus
less on marketing, and more
on putting policies into action.
“Companies look at CSR as a
an opportunity for a press release,
while those that know
most about responsible tourism
often do not know about marketing,”
said Font.
He suggested there has
been a near threefold rise in
complaints to the Advertising
Standards Authority about
regulatory burden.
Travel agents can also act
as introducer-appointed representatives
and direct customers
to a broker or insurance
company as part of a commercial
relationship. But again,
ABTA has no idea how many
members have chosen this
route. Otherwise, agents will
only be able to recommend that
clients take out insurance.
ABTA head of fi nancial
services Mike Monk believes
more people will travel without
insurance as a consequence.
He warned: “About 19% of
trips are not insured and it can
only go one way if people cannot
buy travel insurance at the
point of sale of a holiday.”
FSA team leader for permissions
David Farrow told a
World Travel Market seminar
on insurance: “It is a criminal
offence to be dealing in insurance
if you are not authorised.”
claims by travel fi rms – most
often airlines.
Professor Harold Goodwin
of the International Centre for
Responsible Tourism at Leeds
said: “A lot of people doing things
are hiding for fear they will be
criticised for not doing enough.”
>For more news on
responsible tourism go to
page 16 and see www.
travelweekly.co.uk/
wtm2008
Europe’s big players will
Holiday
‘down b
Ian Taylor
ian.taylor@rbi.co.uk
A sharp decline in holidays available
from the UK will ensure
the continuing good health of
Europe’s major travel companies,
despite the global downturn.
Up to 25% fewer traditional
holidays were on sale in the
UK this summer – according
to Thomas Cook chief executive
Manny Fontenla-Novoa –
and a further 12% reduction is
on the cards for summer 2009.
www.travelweekly.co.uk
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