Travel agents face lockout

 

 

By Emma Connors

 

 

Crunch time for year 2000 compliance will arrive one year early for Australia's 3,500 odd travel agents and the majority could find themselves funding the mistakes of a few.

 

The Travel Compensation Fund has raised the prospect of an increase in compulsory contributions if a failure to prepare for the year 2000 sends some travel agents out of business.

 

"The travel and tourism industry industry has a year less to prepare than others because airline reservation systems work one year in advance. If travel agents are not compliant by next January, they will be locked out," said Travel Compensation Fund chief executive Mr Carlo Brattoni.

 

The fund, which compensates travellers for funds paid to agencies which are forced into bankruptcy, believes an inability to access reservations systems will be the equivalent of a death sentence for travel agents already reeling from a fall off in business.

 

"If one agent can't write tickets, their customers will simply walk around the corner to someone else. Some commentators have predicted the year 2000 problem will cause 10 per cent of small businesses to fail. If that happens, we will have 350 travel agents running up claims," Mr Brattoni said.

 

Such claims would have to be funded by higher contributions. Paid up membership of the fund is compulsory for all travel agents with the exception of those operating solely in the Northern Territory.

 

Mr Brattoni reported the fund has been endeavouring to raise the alarm by warning both the agents themselves and their auditors who are due to sign off annual accounts which also have to be lodged with the Fund.

 

The Fund has also engaged the William Buck accountancy firm to review its own systems and indicated it will delay plans for electronic lodgement until fear over the year 2000 issue and possible virus infection have been resolved.

 

Meanwhile travel, tourism and freight companies expect airlines will reduce the number of flights scheduled in the weeks immediately following January 1, 2000.

 

While airlines have been quick to hose down year 2000 safety concerns, a drop in demand from passengers and lingering concern over some international flight control systems is expected to affect scheduling.

 

Planning decisions are now being made on the basis of such expectations. One Sydney based air cargo company, MSAS, has assumed there will be no scheduled flights in the 10 days following January 1, 2000.

 

A Cathay Pacific spokesman said the airline simply did not know at this stage whether everything would be compliant. However the spokesman added that statements now being made by the US Federal Aviation Authority suggest "there are a growing number who feel year 2000 fears may have been overstated".

 

In June, FAA administrator Jane Garvey said the FAA was confident its $US191.7 million ($300m) year 2000 project would ensure aviation safety was not compromised.