The association’s board has agreed to open discussions with "potentially suitable" trust account providers to make membership more inclusive and to give members more financial protection options.
While it has not yet disclosed the exact criteria for this suitability, Abta will require confirmation that any trust arrangements undertaken by tour operators meeting the requirements of the Package Travel Regulations.
Trust issues: navigating the thorny issue of Atol reform – read more
Agents wishing to use a trust set-up, meanwhile, will require confirmation any monies held in trust will be released only on instruction from the principal supplier.
Abta itself will not manage or financially protect any trust accounts, and will not be responsible for dealing with claims arising from any company failures where trust accounts are involved.
The concession comes as the CAA prepares to embark on another round of consultation on the future of financial protection in travel, in which trust accounting is expected to play a major role, although the CAA has been at pains to stress no decision has yet been made on the course of any reform of the Atol system.
Rachel Jordan, Abta’s director of membership and financial protection, said: “Our recent dialogue with members, including in developing our response to the CAA’s proposals on Atol reform, shows a strong desire for members to have flexibility in the form of financial protection they choose to use.
"This move allows us to provide that greater flexibility, while continuing high and robust standards for Abta membership, to the benefit of both our sector and our members’ customers.”
Target co-founders Jill Waite and Graeme Brett welcomed the move on Monday on behalf of members. Waite said the decision would give members more of a choice in how they protect customers monies.
Brett added: "Many Abta members have had difficulty in obtaining the bonding required by Abta due to the reduction in the number of bond providers. Members can now explore alternative options and remain part of the Abta community.
‘Wonderful step forward’
A spokesperson for trust account provider Protected Trust Services said: "Protected Trust Services is delighted to see Abta recognise well-run trust accounts and embrace the separation of client funds through trust.
"Trust accounts have absolutely proved to be the most robust protection model supporting the UK travel industry, and trusts will inevitably be a strong protection model for UK travel businesses moving forward.
"Working together as an industry and recognising the modernisation of the travel industry is a wonderful step forward."
