ICSM Business News: fears for tourists and suppliers as one of Europe’s largest tour firms goes bust owing hundreds of thousand of pounds
By Harry Mottram: A classic case of fingers being burnt as a holiday firm has gone bust has been revealed this summer German based tour operator FTI Group has collapsed owing hundreds of thousands of pounds of customers’ cash. The group’s British accommodation specialist subsidiary called Youtravel.com known as its ‘bed bank’ cancelled bookings up to 11th June, 2024, with any bookings up 26th July, 2024, also cancelled.
Pervis Chapel of Checkaco said customers of the travel firm will have little likelihood of getting their deposits back if they booked directly through FTI. He said: “A Checkaco credit check last month would have shown FTI were in trouble as on Monday, 3 June 2024, FTI Touristik GmbH, the parent company of the FTI GROUP, filed for the opening of insolvency proceedings. Since the group use the so-called bed bank and Loveholidays then British holidays are in jeopardy over their deposits.”
The Daily Mail has reported that one customer called Annie Cox from Birmingham has paid a further £900 to ensure her holiday in Morocco remained booked leaving her out of pocket. Other holiday makers are also having to rebook their holidays with their original bookings and deposits in doubt. Loveholidays are Atl-protected so refunds are guaranteed but having to rebook and pay more cash is the last thing people want before a vacation. The group had a turnover of £3.1bn last year
In a statement, Youtravel.com said: ‘The insolvency of FTI Touristik GmbH has had a significant impact on Youtravel.com. Over the past three weeks, our management has been actively engaging with the appointed administrator of the FTI group and undergoing the M&A process to secure our future.
‘Whilst we are hopeful for a positive conclusion to these talks soon, we have made the difficult decision to cancel all bookings until and including the 26th July, 2024. We understand the inconvenience this may cause and sincerely apologise for any disruption. Any active bookings in the Youtravel system for arrivals up to and including July 26th will be automatically cancelled without any charges by Monday, 1st July 2024.’
The group owes £1.7million to Greek hotels along with at least 60,000 customers who have booked holidays and thousands of British tourists who hope their deposits are safe.
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