It has been apparent for decades that we need a statutory trust model and let's hope that the deliberations of the BEIS committee come to that conclusion before they are scuppered by the next phase of the Brexit saga.
In the meantime, perhaps we should all reflect on why balance due periods have become so long. Forty years ago, a 6 week balance due period was the norm; what is our excuse for lengthening it to 12, 14, 16 weeks and longer? Is it just because as an industry our balance sheets are so weak? Or is it a sort of arms race: travel agents ask for the money several weeks before the tour operator terms require it and so the tour operator lengthens the balance due period to try to reduce its exposure to invisible liabilities in the travel agent's accounts? Either way, it is time these balance due periods were shortened.
It has been apparent for decades that we need a statutory trust model and let's hope that the deliberations of the BEIS committee come to that conclusion before they are scuppered by the next phase of the Brexit saga.
In the meantime, perhaps we should all reflect on why balance due periods have become so long. Forty years ago, a 6 week balance due period was the norm; what is our excuse for lengthening it to 12, 14, 16 weeks and longer? Is it just because as an industry our balance sheets are so weak? Or is it a sort of arms race: travel agents ask for the money several weeks before the tour operator terms require it and so the tour operator lengthens the balance due period to try to reduce its exposure to invisible liabilities in the travel agent's accounts? Either way, it is time these balance due periods were shortened.