Fred Olsen’s to stop Thomas Cook selling its product as No Credit Insurance Cover

Fred Olsen says it has a policy where it will not deal with any agent where pipeline monies are not protected. The insurance means that if the agent goes bust having pocketed the passengers money but not passed it on to Fred Olsen, then the insurer will reimburse Fred Olsen for its loss. Withdrawal of credit insurance means that Fred Olsen is exposed against a failure.

It is acting prudently and responsibly. It said what it was going to do and it have stuck to that, which is something all cruise agents should think very carefully about.

It is acting consistently. There were a number of high profile agent failures last year. The cruise lines were the biggest creditor to these agencies, notably Gill’s. Cruise lines that had credit insurance will have been protected. Those cruise lines without credit insurance will have suffered very large financial losses. I am sure that Fred Olsen applies the same principles to all its agents. Post-Gill’s, one suspects there is no flexibility in that policy.

Euler Hermes is huge in the credit insurance market. Any loss of appetite by them of travel, and especially cruise agents, will change the dynamic of the whole industry

 

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