House of Travel is disappointed with the decision to wind up the Travel Compensation Fund (TCF) calling it premature. Director, Barry Mayo says it is irresponsible to wind it up without knowing what will replace it.

“It lacks integrity and business acumen to wind the TCF up without knowing what the alternative is going to be.”

Mayo says lack of detail is just one of House of Travel’s concerns.

“Now that this decision has been publicly announced it’s more important than ever that industry participants stay involved and take an interest to ensure that future consumer confidence in travel agents is no less than it has been under the current TCF regime.”

Mayo believes there will be a temptation for industry players to step back but he’s encouraging them to participate and contribute to the process from here on.

“We need a full understanding of how the replacement regulatory structure and framework will promote future consumer confidence in the travel agency industry and how this will be different to the current regulatory and licensing legislation. Existing licensed travel agents need to understand whether or not they will be disadvantaged from a trading perspective by any new regulatory structure and framework.”

Mayo says as a company, House of Travel, will support the transition process but still wants answers to the following outstanding issues:

• Evidence that the generic consumer protection rules are sufficient to actually protect consumers from travel agent misconduct.
• An explanation as to how ASX Listing Rules and ASX Corporate Governance principles and recommendations will provide prudential oversight of travel agency entities that are not a publicly listed company or what will apply if these are not appropriate.
• How exactly the TCF will fund a range of purposes including the creation of the industry-led accreditation scheme, stakeholder communication, education initiatives and consumer research, given that 70 per cent of existing money paid by the travel agency members into the TCF are targeted to go will go into State coffers?

Mayo says they are looking for a commitment that an industry transparent process will be provided which allows for vigorous debate.

“We need regular and timely briefings on the development of a robust and appropriate regulatory structure and framework. The industry needs clarity on all aspects including early advice to the industry as to what the proposed entry criteria for the voluntary industry accreditation will encompass.”

Mayo says House of Travel expects the implementation to be a truly collaborative transition and that they look forward to cooperating and contributing.

“We need the concerns we have expressed to be answered. The future scheme must be preventative as well as reactionary and we look forward to those responsible for the development of the new regulatory framework answering our concerns about placing consumer funds at risk and jeopardizing consumer confidence in travel agents.”

Mayo says that this is an industry issue and not about House of Travel or mobile consulting. However, should the outcome fail to ensure consumer confidence, Mayo says House of Travel has sufficient resource to take whatever steps it considers necessary to ensure consumer confidence in its TravelManagers and Holiday Specialists businesses.

“Our customers’ confidence in us is essential. If we feel there is any doubt around the scheme we will address this independently.”

Mayo believed his opinion piece was important and timely and a reminder to travel agency owners of the issues which appeared to have gone unnoticed.