Chris Gray: Agent or principal? It should be an easy question to answer

Thursday, November 26, 2009

Chris Gray


COMMENT
by Chris Gray,
TTG news editor


The judge in the Medhotels VAT tribunal that took place in London this week confirmed at least one thing before disappearing to consider her decision.

“This is all about whether or not Medhotels was acting as an agent or a principal when selling accommodation,” she said.

To the observers, it seemed like a statement of the blindingly obvious. But the judge shouldn’t be mocked for putting it in such simple terms. Agent or principal should be an easy question to answer. Agents, operators, hoteliers and customers should all know beyond a doubt who is what.

But they don’t and neither do the UK’s finest legal minds. That’s why the same issues end up being discussed in the criminal courts for Travel Republic and the VAT tribunal for Medhotels.

Perhaps this judge can make sense of it and start the process of mending a broken system which is incapable of governing the 21st-century travel industry.

But few think this week’s hearing will provide a definitive answer.

And with not one but three consultations starting, about the European Package Travel Directive, the UK Atol system and airline failure protection, 2010 will start with the entire system of regulation up for grabs.

We have to hope these consultations will create a  system sturdy enough to allow the industry to focus on what it is supposed to do – send people on holiday.

Cumbrian hero

Travel agents don’t often get to be called heroes. But this week saw one independent agent described by Abta chairman John McEwan as a credit to us all.

Independent agent Paul Cusack saw his business wrecked when the Cumbrian floods overwhelmed Cockermouth.

But tomorrow, just over a week later, Cockermouth Travel will open in new premises.

In stormy times, Cusack and his team can be an example to all independents, still the beating heart of the industry and determined to fight for survival, whatever the weather.



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