Travel Today today reports that a significant change to the Australian Travel Industry looks set to take place with the Australian Federation of Travel Agents looking to abolish the Travel Compensation Fund. The AFTA released this in its submission to the review into travel industry consumer protection.

AFTA has proposed a two-step reform process, with a short-term model to be implemented in the first five years. This would see the respective state/territory Travel Agent Acts removed, and the shift towards a national licensing scheme begin. An interim review would take place after the fourth year.

Under AFTA’s proposal, the TCF would be wound up within the first five years, with an industry accreditation scheme established binding all travel services providers, including suppliers and intermediaries.

Travel insurance would effectively replace the TCF as cover for consumer compensation, AFTA said.

Editors Comments: Travel Industry reform of any kind is welcomed. A Federal scheme like the move mentioned above and others need to help guide Australia's fledgeling Travel industry away from the many problems created by a lack of federal regulation and powerful free market players.