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Booked a hotel in Madeira first two weeks of August through low cost holidays, they went under on friday. I can claim back through my credit card so thankfully ok (if i find somewhere else to stay in the meantime!).
Feel sorry for the 27,000 people that are on holiday at the moment that will have to settle up their bill again on leaving the hotel... not a nice way to finish a holiday.
Boooo! 😕
Not protected by ATOL due to being outside the UK.
You get what you pay for, I suppose.
[i]people that are on holiday at the moment that will have to settle up their bill again on leaving the hotel[/i]
It's a shame when an ostensibly UK company bases itself overseas to avoid paying industry insurance premiums or lodging bonds.
Just learned that they pay the hotels over 60 days after the people that paid them checked OUT of the hotel... is that normal?
They [s]are[/s] were a Ponzi scheme disguised as a holiday company.
[i]is that normal? [/i]
probably stretching it but yes, the hotels will often invoice in arrears with 30 or 60 day terms.
Large operators will always tend to get good terms from hotels.
4 of us booked a short break to Bratislava for September. Flights are safe but we have lost £150 each for the hotel as we stupidly paid o debit card. Not the end of the world. I feel sorry for families who have saved all year and have lost their holiday.
"Ponzi scheme disguised as a holiday company."
Yea i read that too, crazy.
Just learned that they pay the hotels over 60 days after the people that paid them checked OUT of the hotel... is that normal?
Quite normal for holiday companies to pay late, in fact most businesses collect money from customers and pay suppliers later, eg restaurants
Sorry to hear OP but this company moved its HQ to Spain (in 2103?) to deliberately opt out of ATOL protection. You where smart to pay with your credit card. We must all campaign for the credit card companies to continue to be required to offer this insurance as they don't want to either.
Ouch, when I read the headline I wondered how many of their customers were currently in Turkey, first you get caught in a coup, then your holiday company goes bust!
The problem is that people often don't book holidays on credit cards because of the fees that are normally charged (1 or 2%).
I just bought a holiday on a debit card (Jet2) to avoid fees but I have annual travel insurance which would cover me if it was cancelled.
PMK2060 EC directive 90/314/EEC is your friend if you used a debit card. It relates to package deals (flight and hotel or hotel and something else would be a package) you need to find out who the bonded the money with and contact them. The insurance covers you until you get back home.
Mrssanta booked it... not that i would have noticed about the ABTA though tbf but booked mindful of the credit card guarantee. You live and you learn eh! 🙂
The problem is that people often don't book holidays on credit cards because of the fees that are normally charged (1 or 2%).
Why do you think they do it? They want debit card payments, yes it's cheaper but also much less comeback to them. Cc companies offer the insurance but they'll normally try and go after the money back themselves. IMO the charging for different payment methods should be illegal.
I went to Turkey last year with that lot - wouldn't have had a clue it wasn't ATOL. Just assumed as it was routed via Lastminute.com
Will be more careful in future...
Is it two days ago again?
http://singletrackmag.com/forum/topic/anyone-booked-a-holiday-with-lowcost-holidays
As I said on the other thread, useless shysters.
The good lady book something in August, seems at least part of it was supplied by a company thats gone belly up, our booking is ATOL covered though so presuming we'll be OK.
Looks like they were operating unlawfully without bonding insurance. Hopefully someone will go to jail for it.
Gone bust? Do you think the Directors went bust too?
On hols at the moment booked through them .had to pay again for accommodation but flights are OK so we've been told. Luckily we have insurance and paid via credit card.
Looks like they were operating unlawfully without bonding insurance.
They did have the right amount under Spanish law (as they moved there). Bond (€1.3m) works out at about £8 per customer...
The Brexit shock will have destroyed their cash flow, 55% of customers were Brits, so their revenue was mainly £ but their costs were mainly €, so the 20% exchange rate shift will have killed them.
[i]The problem is that people often don't book holidays on credit cards because of the fees that are normally charged (1 or 2%).[/i]
I had a discussion about this a few weeks ago, I always pay by credit card for everything; lower risk. My colleague kept going on about the 'cost' and how I was foolish - he's learnt now what the cost is of NOT paying by cc 🙂
<troll>
I'd love to know how many of those 110,000 voted leave.
</troll>
Well, it's been nice knowing you all; I'm off to think of a new username.
johndoh - MemberI just bought a holiday on a debit card (Jet2) to avoid fees but I have annual travel insurance which would cover me if it was cancelled.
Check your T&C's a lot of policies exclude the business going bust because you should be covered by ATOL etc.
Our accomadation was with The firm that went bust, however the travel agent and holiday package is atol covered so they've stumped up, confirmed by the hotel owners.
Throughout discusions we did get see the margins these companies are working to and its not suprising they go bust.
Throughout discusions we did get see the margins these companies are working to and its not suprising they go bust.
Most holiday companies work on thin margins, it's a very competive industry. Throw in a 20% currency devaluation and unless they've hedged for it, they're completely screwed.
Just learned that they pay the hotels over 60 days after the people that paid them checked OUT of the hotel... is that normal?
Pretty good terms, try selling to Telefonica, 180 day payment terms...
I'd love to know how many of those 110,000 voted leave.
Well 52% of them were quite clearly warned this sort of thing would happen, and still thought f*** it, so they can't really complain.
I'd love to know how many of those 110,000 voted leave.
All about Brexit then. Nothing to do with bookings being down to places like Turkey, Egypt, Tunisia etc for completely different reasons.
Though if the 110'000 choose to book a package with a foreign tour company rather than buy British and forego ATOL protection it's their choice. I don't do package holidays but if I did the first thing I would use a credit card with an ATOL protected company.
https://www.theguardian.com/business/2016/may/22/unrest-slows-uk-travel-to-egypt-tunisia-and-turkey
All about Brexit then. Nothing to do with bookings being down to places like Turkey, Egypt, Tunisia etc for completely different reasons.
A 20% devaluation in their income in an industry with wafer thin margins is never going to end well....
A company basing itself in Spain but selling it's product in the UK which didn't hedge against currency variations was never going to end well.
I don't see the rate of holiday companies going bust this year being any more than typical.
20%? Who do you think gets the shitty end of the stick 365 days a year? It ain't the travel company.
There's always fluctuations and certain regions being in vogue, then out of current fashion.
20%? Many holidays are booked a year in advance too at set pricing with the supplier.
Many holidays are booked a year in advance too at set pricing with the supplier.
That doesn't help against exchange rate shifts. Customer price is fixed in £, supplier prices are fixed in Euros.
A company basing itself in Spain but selling it's product in the UK which didn't hedge against currency variations was never going to end well.
Agreed, that's why it was so low cost, they moved to Spain as the Spanish ATOL equiv was cheaper, staff wages were cheaper and not hedging was cheaper.....
I have just received a full refund from my bank for the short break we booked with lowcostholidays. I thought we had lost the money having paid using a debit card. Claimed under debit card dispute (advice on moneysavingexpert.com if anybody needs help).
Result 🙂
PMK, who'd you bank with if you don't mind me asking? I've done the same as you and filled in and sent off all the relevant paperwork from MSE.com and not heard a thing back yet!
Thanks, Ben.
bennn - I bank with the Halifax. I sent everything via email rather than the post (not sure if you have done the same). It would have been processed 2 weeks ago but I went on holiday the day they asked for more info (invoice).
Afternoon PMK, same bank then. Could you email me regarding this please (email in profile).
Cheers.
Result! Didn't know you could get your money back on a debit card....
Benin - I sent the email from my work email so will not have access until tomorrow morning. I will send you the email that I sent Lloyds (Halifax) tomorrow.