Lowcostholidays customers to receive a refund of £7.78

Tuesday brought a bitter respite for thousands of holidaymakers left out in the cold by the collapse of Lowcosttravelgroup, who will receive a refund of just £7.78 each.

The firm entered administration late last week, leaving 110,000 customers with paid-up bookings facing no holiday and 27,000 customers already overseas.

Lowcosttravelgroup was not registered with the government-recommended Atol scheme, which would have seen all customers repaid in full.

Rather, it had £1.09m lodged with Mallorcan authorities, leaving enough to pay out less than £10 to each affected customer.

Customers currently overseas are being required by their hotels to pay again for their accommodation costs and other incidentals, as accommodation providers had not yet been paid by Lowcosttravelgroup.

It is understood Lowcosttravelgroup quit the Atol scheme in 2013.

The company’s administrator’s blamed its ultimate collapse on the fall in sterling since the EU referendum, as well as the threat from terrorism.