MEMBERS VOICE CONCERNS

THE Council of Australian Tour Operators (CATO) recently held its annual Brisbane meeting, with AFTA’S new national manager of strategy and policy Dean Long as a special guest speaker. It was pleasing to note that – at the time of the meeting – in excess of 75% of CATO full members had already taken up membership to ATFA’S travel accreditation scheme (ATAS), with the deadline for other members to join being extended to 31 December, 2014. The meeting was an open forum allowing members to discuss topical issues and areas of concern. There was a robust discussion on ATAS and in particular the value of the optional travel insurance schemes. The main concerns from members were that the premiums being offered vary greatly on turnover and destinations covered, and in most cases the end cost is too high to make it commercially viable to consider. It was generally agreed that insurance and a more effective form of financial cover for both members and consumers was an area that needed attention. In response, Dean Long reminded members that ATAS is an accreditation program, not an insurance product or compensation scheme. The recent advertising campaign is also highlighting this fact and focusing on informing consumers of their rights and risks when booking travel. AFTA has also received very positive feedback from those who have signed up to ATAS with 93% of participants reporting they would recommend other businesses to join the scheme. Members also voiced concerns on the rise of the online travel agent (OTA) sector and continual erosion of wholesale and retail businesses. Chairman Rod Eather pointed out that OTAS are not responsible for growing the market, but rather, shifting it to an online environment. For instance, a number of OTAS that began offering direct sales to clients only are now offering commission to travel agents to secure their business as well. This has the effect of closing the gap on prices, however those at the meeting agreed that OTAS offer little service or knowledge, and mainly depend on their clients contacting wholesalers or travel agents for details before searching for a cheaper price online. They also offer little, if any, promotion on destinations, hotels, tours etc, with the emphasis being on availability and pricing, and encouraging travellers to book via their site. One member reported that hoteliers were now protesting against the OTA’S constant demands for lower rates and lack of commitment to selling their products, meaning a greater shift towards support for wholesalers and agents. A number of ideas to combat losses to OTAS were suggested and it was proposed that members who could contribute should contact the chairman via email at rod@beachcomber.com.au. The next CATO meeting will be held in Sydney on 26 November. Please register your interest via email at gina@afta.com.au.

ATAS is an accreditation program, not an insurance product...’