The ADR scheme is intended as a “cost effective means to resolve claims”, without the need to go to court.
 
It is open to holidaymakers who have booked with an Abta member and are unable to resolve their differences through the company’s complaints process.
 
During an interview with TTG in December Abta chief executive Mark Tanzer revealed plans to update the association’s existing scheme: “We want people with legitimate issues to be able to come to us so that it is cheaper for both parties.”
 
Abta said ADR decisions take no longer than eight weeks from start to finish and there is no need for the holidaymaker to work with a claims management company, “meaning they would receive any award in full”.
 
Holiday sickness claims now represent nine in 10 personal injury complaints received by Abta members, up from around 60% in 2013.
 
“Due to a loophole in the law, holiday sickness claims have become a lucrative area for claims management companies who typically take a significant cut out of any award,” said Abta in a statement.
 
The scheme is voluntary and both parties have to agree to use it. It involves disputes about an injury or sickness that the customer alleges was the fault of the company, or one of their suppliers if they were on a package holiday.
 
Personal injury claims have not previously been covered by Abta’s current ADR scheme.
 
Simon Bunce, director of legal affairs, Abta, said: “This enables members to save on legal costs and holidaymakers to save time and sidestep claims firms that are likely to take a large slice of any award.”