About our financial bonding and the Travel Trust Association
The Travel Trust Association was formed as an organisation to provide total consumer protection at much lower costs than existing bonding arrangements. The scheme that we operate is a Trust Account backed by 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).
How does the Scheme work?
All our Members operate their own properly constituted Trust Accounts. The Independent Trustee on each Trust Account is always a professional person e.g. Chartered or Certified Accountant, Solicitor, TTA Trustees (UK) Ltd. In the event of a failure, the Association steps in and works closely with the Trustee to the Trust Account. Because of our monthly monitoring procedure on members, we already have transaction reports giving details on all outstanding bookings including customers details, travel services booked, names of Suppliers / Principals and money paid over. Reconciliation is done on the Trust Account and customer funds identified. Customers and Suppliers / Principals are immediately notified of Member failure. Suppliers are paid from the Trust Account enabling the customer to have his holiday as booked. Where this is not possible the customer is refunded. If the Trust Account is found to be deficient of funds due to fraud the fidelity insurance policy (in place with every booking) is invoked and replaces the trust funds so that suppliers are paid or customers refunded.
Failure of Tour Operator Member
The same procedure applies. Tour Operator / Suppliers are paid e.g. flight provider, hotelier, car hire etc., and the customer travels. If the service booked is dependent on Tour Operator presence, the holiday is therefore cancelled, and the customer is refunded. If any holidaymakers are left stranded the TTA undertakes to step in and ensure repatriation where that responsibility is with our Member and not already provided.
Failure of Travel Agent Member
The procedure as before. Travel Agent is generally only responsible for pipeline funds. The TTA ensures suppliers are paid and customers travel. Tour Operator is usually responsible for arranging repatriation of stranded customers. Failure of Travel Agent Member who acted as a Tour Operator Procedure is as before but, in this instance, the responsibility for repatriation maybe with our Member. The TTA would undertake to ensure repatriation.
Normally the TTA would notify the customer of the Member’s failure and wherever possible it is envisaged the customer would still receive his booked services even at short notice.
Our Travel Trust Membership number is U4460. You can find out more information about our companies bonding by visiting the Travel Trust, please click on the logo below.