What's Happening?
TravelManagers has developed an in-house protection fund, the TravelManagers Customer Fund (TCF), which has grown to nearly $1.4 million. This fund is designed to reimburse clients and personal travel managers (PTMs) if a preferred supplier collapses, covering both the full booking value and PTM commission. The TCF was established in June 2019 and is held in a separate, independently audited bank account. The fund aims to address the risk of customer money being lost when suppliers fail, a gap left by the abolition of the government-run Travel Compensation Fund in 2014. TravelManagers contributes to the fund monthly, based on network size, and it is part of a broader risk-mitigation strategy that includes an audited client trust account and credit card chargeback insurance.
Why It's Important?
The establishment of the TCF by TravelManagers is significant as it provides a safety net for customers and PTMs in the event of supplier failures, a common risk in the travel industry. This initiative sets a benchmark in the industry, as few other companies offer similar protection. By proactively creating this fund, TravelManagers is not only safeguarding its clients but also enhancing its reputation as a reliable travel service provider. The fund's existence could influence other companies to adopt similar measures, potentially leading to broader industry changes in customer protection practices.
What's Next?
TravelManagers plans to continue growing the fund with monthly contributions, aiming to cover all preferred suppliers in the future. The company is positioning itself to handle even large-scale supplier failures, ensuring that PTMs and their clients are protected. This ongoing commitment may prompt other travel companies to consider similar protective measures, potentially leading to industry-wide changes in how customer funds are safeguarded.
