Helping small tour operators and niche agents with travel ecommerce
TOPP or TTA?
I'm in the process of setting up a new travel company (uk incoming) and trying to decide between TOPP and TTA. Can users of either advise on their practical experience of these schemes?
Replies to This Discussion
-
Permalink Reply by Neil Lapping on -
Hi Keith,
I have been using Topp for a couple of years and TOFC before that which was pretty much the same thing. I am sure that you have investigated it but basically they charge an insurance premium based on a percentage of sales.
The huge advantage of this is that of cash flow - no waiting for holidays to end before you can access funds which is my undersanding of TTA. As a new operator I would image that your suppliers would require payment upfront so with topp you can request deposits and final payment well in advance and you can then pay suppliers in advance of the clients arrival.
With TTA you are going to have a cash flow black hole as the business grows if you cannot spend client funds until client has departed.
Generally my experience of topp admin and submissions is positive, as well as you are well organised and vaguely computer savvy.
Hope this helps.
Neil
-
Permalink Reply by Keith Roberts on -
Neil,
Thanks. This is the way I'm thinking as well. Cashflow is a major consideration even though we've secured good T&C's with our main suppliers. I guess the question I should have asked is " What, if any, are the advantages of going with TTA?" At the moment I can't see much other than being part of a trade organisation with agreed commission rates from numerous tour operators - none of whom I have any interest in.
-
Permalink Reply by Gary Lewis on -
Hi Keith,
I have been asked to comment by smallfishbigocean as a Director of Travel Trust Association.
TOPPS is a new scheme which has made us review our own proposition relating to the needs of tour organiser / operator TTA members that have run into cash flow issues.
Travel Trust Associations "Fidelity Plus" product now allows money to flow into and then out of the trust account to pay a supplier directly. This resolves the cashflow requirement when paying suppliers in the UK and abroad.
The TTA proposition also provides technology, both Dynamic packing product free of charge and a back office solution. We have "consortia/ business partner" deals that our members gain access to straight away both for product and higher commission rates. Members also get access to low cost credit card terminals, advertising rates, website technology and specialist advice and membership support.
We are also the only travel Association that offers 100% financial protection to all customers of our members. That is beyond the capabilities of ATOL, ABTA and any of the insurance schemes that have caveats on coverage for consumers.
I believe that for new entrants to our industry that should be a major consideration when selling to your customers.
Apologies for the sales spin, but if we can be of help please do not hesitate to contact me directly.
Kind regards,
Gary Lewis
Operations Director
Travel Trust Association
-
Permalink Reply by Alex Bainbridge on -
ABTA have commented on this thread
http://www.smallfishbigocean.com/forum/topic/show?id=2010148:Topic:...
about TTA vs ABTA membership.......... any thoughts on that Gary?
-
Permalink Reply by Alex Bainbridge on
-
Just for clarity for those unfamiliar with TTA or TOPP
TOPP - Tour Operator Payment Protection: http://www.travel-general.com/topp_intro.asp
TTA - Travel Trust Association: http://www.traveltrust.co.uk/
Both help smaller tour operators and indepdendent agents (in the UK) with complying with the bonding requirements for running a small travel business - and both can assist with finding a credit card payment solution
-
Permalink Reply by Ralph Foulds on
-
Hi,
Firstly, good luck with your new venture.
We have been members of the TTA for several years now, and found them good to work with. There are some hassles involved, but also a lot of benefits, and I've listed a few below...
Benefits
- using a trust account, where you can't receive client funds until after the tour is complete, gives you very useful financial discipline when starting a new business, stopping you over-reaching yourself and spending money you don't really have.
- you get a guaranteed credit card facility (offline) through Streamline straight away (with pretty cheap charges as well)
- you get access to competitively priced travel insurance, which you can sell with your own mark-up (only to UK residents)
- you get discounted rates if you want to get an ATOL
- the TTA is much better known than TOPP by consumers, giving your customers more peace of mind when booking with you (particularly if they know or find out you are a new business)
- you get discounted rates from a wide range of suppliers through being a TTA member
- you can access other TTA members to sell your products
Cons
- using a trust account does give you cash flow issues (though the TTA has recently launched a new fidelity product which will allow you to take funds straight out of your trust account for certain approved suppliers)
- providing all the paperwork and reports required to withdraw funds from your trust account is time-consuming, particularly if you have multiple suppliers. Reports are coming within TourCMS to assist with this.
- it may be more expensive overall than TOPP (with the TTA you'll pay a £500 annual fee, about £90/month to manage the trust account, plus £2.73 per passenger for a fidelity policy which provides extra protection to the customer in case you don't operate the trust account properly)
Overall, the people at the TTA are good to work with, and we'd be happy to recommend them to a new business like yourselves.
Hope this helps.
best wishes, Ralph
-
Permalink Reply by Keith Roberts on
-
Ralph,
Thanks for the comprehensive reply and your good wishes. It's appreciated.
-The financial discipline is a very good and important point .
-From my understanding a credit card facility is also available with TOPP (I've been looking at Travel & General Insurance Co.)
-ATOL I won't need in 2008 but will be a consideration in 2009.
- I have agreements in place with an US insurance company and in process with a German co.
-Agree that TTA is much more widely known that TOPP but as I'm initially selling to mainland EU and USA/Canada audience this may not be a big issue as long as its clear from my website that their money is protected and they can make independent check on this should they wish.
-I will have multiple suppliers and not keen on masses of paperwork.
I guess I 'm thinking that TOPP may be a better route for me( together with some self imposed financial discipline).
It was a great help. Thanks
-
-
Hi Keith,
Looks like it may be, yes.
Also, with the TTA, you are only allowed to sell their own travel insurance, not through other operators as you have set up.
I'm not sure if you'll get a guaranteed credit card facility & merchant number straight away through TOPP though - they may provide application forms and a route in, but whether you'll actually get it straight away as a newly formed company with no provenance, I'm not sure - I'd recommend asking Travel & General whether it is guaranteed, or just an application subject to approval they cannot control.
Ralph
-
Permalink Reply by Ronald Ashri on -
Hi Keith,
we have been TTA members for almost 4 years now and yes the paperwork at times is a huge hassle. We organise specialist holidays in Sicily and have to deal with tiny agriturismos, B&Bs, etc and a client trip can include 3-4 of these places.
So then requesting the money means a) getting all the receipts together b) diving the clients money across different forms in order to request the correct amount per supplier - at times it can get tricky especially for the more complicated tours.
However, on the flip side we have a very precise breakdown of costs/profits per client/supplier - which goes back to that enforced discipline point.
It was also very simple to accept payments via the website (through Worldpay and Streamline) which was crucial for us.
Reponse, service has been great and there is easy access to many providers (from car rental to hotels all through the TTA system which might be a hassle to have to set up on your own).
So overall a positive experience with an organisation that is clearly here for the long term.
I guess what you really need now are some comments from a TOPP user!
-
Permalink Reply by Tom Cree on -
Hi
I agree with most of the comments recommending TTA and as a new member we have just been through the process. Couple of issues that I was unaware of was an extra payment to obtain a mini ATOL through them, but it is all a lot cheaper and easier than some schemes. The cash flow implications for us are relieved by the new TTA system of having an "approved" supplier.
The insurance thing is a bit of a pain. (The fidelity trust is easy) but to sell their insurance is too much hassle so we are just suggesting that customers get themselves insured. (when TTA put a direct link to the insurance it will mean that the customer can go and fill in the forms himself if he wants to)
Hving spent many months investigating the schemes I can absolutely say that the TTA system provided what we wanted with the least fuss and importantly, the least expense
Tom Cree
Aerotrax International Ltd trading as www.costaricadirect.co.uk
-
Permalink Reply by Keith Roberts on
-
Just want to say thanks to all who contributed to this thread. It really has been a tremendous help to us and as a result we've decided that we'll be sending off our application to the TTA .
© 2010 Created by Small Fish Big Ocean
