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New ABTA / CIArb scheme gives the travel industry an international forum for dispute resolution

Resolve business disputes with minimum cost and relationship damage

London, Thursday 8 May '03 - The Association of British Travel Agents (ABTA) and the Chartered Institute of Arbitrators, (CIArb) are launching a new commercial mediation and arbitration (med-arb) scheme for tour operators and travel agents who want to resolve business disputes with the minimum of cost and relationship damage. This is the first of its kind in the UK, and the only form of commercial arbitration to be recommended by ABTA.

The commercial med-arb scheme will offer tour operators and travel agents the opportunity to resolve disputes with a contractor or business partner across international borders whilst at the same time keeping open the option for further business relations between the two companies.

The new scheme is being launched in conjunction with a new personal injury mediation scheme and the re-launch of the ABTA / CIArb consumer arbitration scheme. The two initiatives are being officially unveiled on 22nd May at a seminar on Travel Injuries at the Cavendish Conference centre sponsored by Hill Dickenson and Euclidian.

The CIArb and ABTA already run the UK's most commonly used arbitration scheme for consumers with contractual claims to make against travel agents, rather than business-to-business or personal injury claims. The ASTI (arbitration scheme for the travel industry) handles in excess of 1,400 disputes every year, each one with a legally binding outcome. These further offerings will add to the CIArb's ability to supply the needs of business and consumers across the travel industry worldwide.
Allan Connarty, CIArb director of operations commented, "Every year, thousands of disputes occur in the travel industry. Because of the nature of the travel industry, the third party contracts involved and the cross-border nature of holidays, the issues involved in legal cases can seem almost insurmountable. There is often no immediate and clear legal jurisdiction and subjects of dispute can range from quality of staff uniforms through to the quality of accommodation. Add to this the fact that legal proceedings cost a great deal of money, take a lot of time and are often far too public therefore mediation or arbitration as alternatives become extremely attractive."

"The new mediation-arbitration scheme avoids all these issues and ends in the same result as court proceeding, i.e. a legally binding judgement handed down to each party, costing less money, taking less time and with less publicity."
ABTA's head of consumer affairs, Keith Richards explained the importance of the commercial med-arb scheme in more detail; "In the travel industry, even if a supplier doesn't perform to a level of contractual satisfaction, the client may still want, or even need, to deal with them again in the future. A hotelier on a small Greek island may be the only one on that island. This puts the tour operator in a difficult position, either it doesn't offer holidays to that destination, or it doesn't get involved in legal action that would most likely leave working relations between the two companies in tatters."

Both schemes provide ready-made mediation or arbitration programmes that avoid many of the problems of a court hearing, as well as the issues of designing independent mediation such as initial agreements, mediators or arbitrators, fees and venues.
All parties undertaking the mediation process are aware of all costs (except potential awards - for the sums in dispute, if any) before the process actually begins. The mediation process can assist the parties to negotiate an agreement on how they will resolve the issues between them, usually resulting in a contractual arrangement on to how to progress their future commercial relationship. When the arbitration procedures are used the arbitrator will provide a clear, final and binding decision on the issues between the parties.

For more information on the scheme, please contact Abby Jennings at the CIArb on 020 7421 7444. For attendance at the Personal Injury seminar on 22nd May, please contact Howard Evans, The Conference Business on 01444 416678.

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New ABTA / CIArb scheme gives the travel industry an international forum for dispute resolution

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