The Australian Federation of Travel Agents (AFTA) has released its response to the Travel Industry Transition Plan as reform of travel agent licensing and consumer protection inches closer.
The body re-iterated its commitment to establishing a voluntary accreditation scheme and to rely on generic consumer protection laws while axing the Travel Compensation Fund (TCF).
In a 42-page document, AFTA outlined a timetable that would see the TCF progressively wound down, starting from the end of the current financial year. The TCF would cease to exist by June 30, 2015.
AFTA said it was essential that “minimum standards” remain in place to protect the consumer and the integrity of the travel industry.
With that in mind, AFTA said it is “progressing well” with the development of a voluntary accreditation scheme and would be “well placed” to administer such a scheme when the formal transition plan kicks off.
AFTA chief executive Jayson Westbury said it wants 10% of the TCF’s $30 million reserves to set up the scheme and a further 20% ($6m) to educate consumers and the trade about the new-look scheme and what it means.
“Such a campaign could include marketing material informing travellers of the benefits and risks associated with purchasing via a travel agent,” the AFTA submission says. “Consumers could be informed to better understand the nature of the travel agent transaction and the parties involved. This would include payments in advance and the existing protection offered by credit card providers (eg charge back).”
AFTA said it would also urge travellers to book through an accredited agent which would further convince retailers of the need to join the voluntary scheme.
All the major agency groups have indicated their willingness to take part, Westbury said.
Criteria to become accredited would include adherence to a code of conduct in accordance with Australian Competition and Consumer guideline, evidence of training and advertising the payment of a fee, which Westbury suggested would be a “nominal” amount.
With 30% of the TCF reserves set aside for accreditation start-up costs and an education campaign, that would leave 70% to be distributed to states and territories.
Agents are unlikely to see any of it however with the cash certain to become consolidated revenue.
