As associations go, Abta hasn’t always had an easy ride. In its three-pronged role as consumer watchdog and trade body for both travel agents and tour operators, it has continued to serve as the middle-man - invariably upsetting either of the latter two camps depending on its stance at any one time.
In recent years, the letters pages of TTG have featured comments from agents questioning how Abta can continue to represent both tour operators and travel agents, and arguing over the relevance of the association in today’s changing market.
But today, as we sit in Abta’s HQ at London Bridge, in the shadow of the Shard, chief executive Mark Tanzer is unashamedly insistent that the purpose of Abta remains as important as ever, as he declares the association “has never been more needed than it is now”.
This of course, is just one of the messages that Tanzer will be conveying to Abta’s members when up to 600 delegates converge on Ljubljana this weekend.
As has become typical in recent years, this number of attendees, which has been capped at 600 this year - just 15% of the 4,000 that attended the annual Abta convention a decade ago - is likely to raise a few eyebrows. But Tanzer is keen to highlight that these are “different times” - with different members facing very different challenges.
“I remember my first convention nine years ago, when there used to be up to 4,000 people. It was seen as the end-of-term party,” he laughs. “But the world has changed - we recognised that that model was not going to be sustainable. It’s a different thing now.
“We wanted to cap the convention at 600 because we felt it was the right size to keep it intimate,” he adds. “When you get to 1,000 people, it can feel more like a trade fair.”
“People tell us that they see Atol solely as offering financial protection. Customers know that Abta offers more”
Tanzer says he also remembers his first convention for another reason: “That was the year that Tui stood up and announced it was going to cut travel agent commission.” He grimaces: “It was almost like agents on one side of the room and tour operators on the other, but it was a different world then. Now the convention is more about the shape of the industry.
Does he believe this antipathy between the two camps has dissolved? “These categories aren’t the same as they used to be,” he admits. “Some members are now a mix of tour operator and agent - these definitions have become blurred.”
But what would Tanzer say to those members who still argue that Abta favours tour operators too heavily? “I don’t see any policy bias towards one or another,” he insists. “The two are part of the same chain - they are not separate camps.”
He points to the membership renewal statistics as evidence of members’ satisfaction with the organisation, with 66 new joiners this year, compared with 50 who have left - 75% of which were down to financial failures or business closures. “I would be concerned if we weren’t seeing positive renewal numbers, but our membership grew last year.”
Well-known player
The brand awareness of Abta also apparently saw growth in 2013, with the latest figures from the association highlighting a rise - albeit of just one percentage point - in consumer knowledge of the brand. Tanzer says this awareness is one of the major boons for its members. “When we ask people why they’re members of Abta, they say the main reason is that consumer confidence in the Abta brand is very high.
“We’ve put a lot of effort into keeping that brand awareness,” he adds. “Consumers are aware that we have a code of conduct, and a helpline, and that we’re there to monitor the trade.”
After itself, Abta noted that Atol remained the most recognised travel industry brand, with a 50% “public recognition factor”. But Tanzer dismisses any suggestion that the Atol brand could pose a threat to Abta. “I don’t think Atol has got the same personality as Abta,” he says. “When we do research people tell us that they see Atol solely as offering financial protection. Customers know that Abta offers more.”
“The service we provide as a trade association has never been needed as much as it is now”
And with the all the various pieces of legislation due to be implemented over the next year - the Package Travel Directive, alterations to the Small Business Atol and planned changes to the overall Atol scheme - Tanzer is adamant that the importance of Abta for its members will become more pivotal than ever.
“The service we provide as a trade association has never been needed as much as it is now, because of all the regulatory changes,” he insists. “The trade needs to have a body that is fighting for members, and that will come and help them understand how these changes will apply to them. They need a strong trade association to help them through this.”
Abta’s strength and support for members will be one of the messages which Tanzer hopes delegates will take with them from The Travel Convention this weekend, particularly in light of “the current changing commercial landscape” - one of the major themes of the conference, and something which Tanzer believes is one of the “biggest challenges facing the industry”.
“The rapidity of change in the market is startling,” Tanzer says. “There is a whole airline dynamic going on that the trade needs to understand.
“If you look at the charter flight market, the fact that there are now fewer available means travel companies are having to change their business models. And there’s more capacity in the airline world - this is driving down prices and making self-assembly more attractive.”
Phase two internet
“Personalisation” will be the umbrella theme for the conference, including the issue of data and the continued evolution of the internet, which Tanzer says is now entering a “phase two”.
“With phase one of the internet, we had bed banks putting a lot of choice out there, but customers have been overwhelmed by options - they want to have curated content rather than millions of hotels. Businesses need to think: ‘How can I provide that, and how do I get paid for it?’”
Aside from these issues, Tanzer acknowledges that 2014 overall has also proved “reasonably challenging” for members, with the year starting off well, but faltering over the summer as the World Cup took hold and blue skies arrived in Britain.
For Abta itself however, Tanzer says its been “an incredibly busy time - not just with PTD and Atol, but also with regard to VAT changes, which have an immediate effect on members’ bottom lines”.
And with the 2015 election, conclusion of the Davies Commission and the final publication of PTD, Tanzer acknowledges that next year looks set to be even busier.
Despite changes to APD, which will come into force next April, Tanzer also insists Abta will not let up in its campaigning as part of the Fair Tax on Flying pressure group to further reduce the air duty. In the mean time, the association is about to engage in discussions with the Department for Business, Innovation and Skills over the government’s response to PTD. Tanzer’s claim the association “has never been more needed than it is now” looks set to remain true for a while yet.
