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Commenting on the failure, he said: “ We are naturally disappointed at the failure of any travel company, especially on the scale of XL. Our immediate concern is for the welfare of stranded passengers and for passengers with future bookings. Our Members, especially Thomson, First Choice, Thomas Cook and Virgin Holidays, are working very closely with the CAA to repatriate XL customers, and the mechanism for claiming refunds is up and running.”

The failure of XL is another demonstration of the pressures faced by the travel industry at this time – especially the airline sector. High fuel costs and restricted credit have combined to force several airlines into administration. Tanzer said “Ours is not the only industry to be affected by the economic climate, and I expect to see continued consolidation of travel organisers over the coming months – a process that started last year with the merger of the largest four tour operators into two. Although these pressures are severe, and will continue to be felt in the short term, underlying demand remains strong. The reduction in industry capacity that follows a failure such as XL may well work to the advantage of other tour operators. The travel industry has historically been proved itself resilient to external shocks such as this.”

Because of the mix of its businesses, the failure of XL has highlighted inconsistencies in the arrangements for protecting passengers. Although the majority of XL customers bought package holidays and would therefore be covered under the ATOL scheme, thousands who booked directly on the XL.com website would have no statutory protection. “ The Government has repeatedly rejected industry appeals for a universal system of protection that would cover all outbound flights”, said Tanzer. “The failure of XL demonstrates the virtue of financial protection, and the hazards of travelling without it. We shall renew our call on Government to address this issue as a matter of the utmost urgency”.

Financial protection for passengers is a statutory requirement only if the arrangements are sold as a package. The growth of the internet and the low-cost airlines has meant an increasing proportion of travellers are buying travel outside the scheme of protection. “ Until the situation is reformed and made consistent, we recommend that travellers by package holidays from ABTA Members, as these provide full repatriation and refund protection”.

12 September 2008

For further information contact:

Sean Tipton, Communications Officer, tel: 020 7307 1902/1900

Frances Tuke, Public Relations Manager, tel: 020 7307 1903/1900

Casia Zajac, Head of Communications, tel: 020 7307 1987
Mobile: 07894 073010

Out of Hours:  Contact the Duty Press Officer via pager: 07659 190987

E-mail: press@abta.co.uk

Web: www.abta.com
 

Notes to Editors
ABTA was founded in 1950 and currently has over 1,500 members with 6,000 outlets. Members include travel agents, tour operators and support services right across the spectrum from small family-owned businesses to the largest tour operators. 

ABTA is the largest travel association in the UK and its members provide 90% of the foreign package holidays in the UK as well as selling millions of independent travel arrangements. 

As part of its comprehensive package of services to members, ABTA, as a non-party political organisation, also provides an effective voice to represent the interests of its Members to government and key opinion formers at the highest levels.  In the UK, these include, government ministers, constituency MPs, Select Committee members, senior civil servants and members of the political opposition parties in both Westminster and the devolved administrations in Wales, Scotland and Northern Ireland. 

In Europe, ABTA is forming close ties with members of the European Parliament, the European Commission and staff within the Director Generals’ Secretariats. ABTA works in partnership with ECTAA (the European grouping of travel agents and tour operators’ associations) to lobby on interests relevant to its Members.