The report said the loss "related mainly to one significant case of customer refund claims following the failure of an Abta member exceeding the bond held by Abta".
That failure was of CMV parent South Quay Travel and Leisure Ltd in July 2020.
South Quay was bonded for £12 million less than it may have suggested, which meant Abta saw a £408,000 profit the previous year turn into a £15.27 million loss.
The latest report, for the year ended 30 June 2021, shows £12.73 million of the loss came from insurance claims.
CMV collapsed in July 2020 and was dissolved in August this year, with almost £96.4 million owing to creditors that will not be repaid.
TTG has approached Abta for comment.
Elsewhere, the association said the financial year was characterised by “extremely challenging trading conditions”, which resulted in 28 Abta members failing.
The report said: “In the past 12 months Abta has received over 43,000 claims and has paid £23,687,000 on 17,835 claims across the financial year.”
Of the 28 failures, 12 were principals, five were retail and 11 were both. Claims from principals totalled £21.3 million, with retail at £117,000 and dual member claims at £233,000.
Covid also impacted Abta’s events and convention business, income from which fell from £1.2 million to £339,000.
The association secured a £2 million bank loan in July 2021 but repaid this in October after selling its former Newman Street head office building in central London for £19.65 million.
It said: “The sale will allow Abta to shape the association for the future and continue to provide the breadth of services that Abta members demand.”
Membership hit
Abta also saw a fall in its membership income. The year saw 149 members leave the association and 22 join, reducing the total from 1,055 to 928, a fall of 12%.
Aggregate member turnover pre-Covid exceeded £40 billion. Abta said: “Based on current accounts submitted by Abta members this is down to £18.6 billion, highlighting the initial Covid impact.”
Abta said: “This reduction reflects the impact of Covid, with a number of members ceasing to trade or failing financially and also continuing consolidation within the industry.”
Despite the financial hits, Abta’s auditors concluded there were no reasons that “may cast significant doubt” on the association’s ability to continue as a going concern.
The accounts also show Abta chief executive Mark Tanzer’s pay package fell slightly in 2021, from £321,000 to £315,000.
