Excellent news came this week as it has been confirmed that ABTA plans to recognise trust accounts for travel. Members of ABTA will subsequently have the option to protect their clients’ monies through a secure trust account system.
This news comes amidst the ongoing series of CAA consultations, many of which discuss the potential use of a travel trust account system of financial protection for ATOL funds.
ABTA’s director of membership and financial protection, Rachel Jordan, said, “Our recent dialogue with members, including in developing our response to the CAA’s proposals on Atol reform, shows a strong desire for members to have flexibility in the form of financial protection they choose to use.
“This move allows us to provide that greater flexibility, while continuing high and robust standards for Abta membership, to the benefit of both our sector and our members’ customers.”
ABTA are currently taking steps to open up their membership to trust account protection under certain criteria. Though they have not provided the details of the exact criteria as of yet, there are a few ideas of the criteria needed for ‘potentially-suitable’ trust providers to be used by members in tandem with ABTA membership.
For tour operators, this means ensuring complete Package Travel Regulations compliance with their trust provider. Travel agents will need to confirm that all the protected monies going into a trust account will only be released from trust under the instruction of the principal supplier in trust.
It is wonderful news to see more of the travel world embracing the protection of a well-run trust account system for travel businesses. We at Protected Trust Services (PTS) are delighted to see the potential for more businesses and consumers alike to be completely financially protected through trust.
“Protected Trust Services is delighted to see Abta recognise well run trust accounts and embrace the separation of client funds through trust,” said a spokesperson for PTS.
“Trust accounts have absolutely proved to be the most robust protection model supporting the UK travel industry and trusts will inevitably be a strong protection model for UK travel businesses moving forward.
“Working together as an industry and recognising the modernisation of the travel industry is a wonderful step forward.”
At PTS, we run a secure trust account system to provide the best financial protection possible for our PTS members are their consumers alike. Not only does our trust account ensure complete Package Travel Regulations compliance, but the use of independent trustees means no one profiting from a consumer’s booking has direct access to the monies involved.
With an efficient system that allows monies to be processed, tracked, and moved in a matter of hours, and complete transparency, PTS members can rest assured and give their consumers complete confidence that their monies are protected. Plus, PTS reconcile daily down to each individual booking so members and consumers can call up and find out exactly where the monies are.
The separation of client monies is efficient and secure with PTS, so if you’d like to find out more about becoming a Protected Trust Services member and how we protect you and your consumers with our trust account system, please call a helpful member of staff at 0207 190 9988.