The consecutive failures of two charter operations in the space of less than a week is of great concern to travel agents, especially since travel agents themselves are obliged by law to contribute to an insolvency fund to protect consumers their agency's own insolvency, The Federated Association of Travel & Tourism Agents (FATTA) said in a statement
While congratulating the Minister of Tourism for promptly intervening to repatriate stranded travellers, FATTA calls for an immediate review of the Travel Insolvency Fund regulations with a view to widening the scope of the regulations to include similar protection for consumers against the financial failure of scheduled and charter airlines.
FATTA reminds consumers that the Package Travel Insolvency Fund regulations currently protect consumers against the insolvency of their travel agent. The fund provides full protection to consumers for advance payments related to package travel services which are not performed as a result of such insolvency and will also cover the costs of repatriation for any travellers stranded abroad where necessary. However, such protection is only provided where payments for the services are documented by electronic certificates issued specifically by the Fund.
Travel agents are only permitted to legally sell package holidays if they are registered with the fund. FATTA President Iain Tonna said "Without a licenced travel agent, you're on your own. FATTA urges consumers to guarantee protection of their payments by booking their package travel services through licensed operators registered with the Insolvency Fund".
Tonna also highlighted that protection is only guaranteed if the agent provides a certificate and fiscal receipt immediately upon first payment and amended certificates and fiscal receipts immediately upon each subsequent payment.
A list of licensed travel agents registered with the Insolvency Fund can be found on the MTA website.