Lowcosttravelgroup collapse disrupts 140,000 travellers

Brexit claimed its first scalp in the travel industry at the weekend, with Lowcosttravelgroup ceasing all trading, disrupting the plans of more than 100,000 holidaymakers.

The privately-held group and all of its subsidiaries have fallen under the control of administrators, who said the move came after “exhaustive attempts by the group’s directors to rescue the group, which has been hampered by the recent and ongoing turbulent financial environment.”

Brexit-related uncertainty, as well as increased competition in the holiday sector, have been blamed for the collapse.

Around 27,000 customers are currently in resorts booked through the firm, with another 110,000 customers booked but yet to travel.

“The failure will affect many customers who have purchased flights or holidays, some of whom are on holiday in resorts and some of whom have not travelled yet,” said a spokesman for administrators Smith & Williamson.

“All flights as regards those currently in resorts have been paid for and hence customers will be able to fly home when their holidays are over.

“Unfortunately as regards customers who have not travelled as yet, a small number will have problems as regards their flights not having been paid for and many will have problems as regards their hotel rooms not having been paid for,” the spokesman said.

A text notice has replaced the company’s main website, and says customers may be required by hotel suppliers, transfer suppliers and car parking suppliers to pay upfront - even if they are already on holiday.

It advises customers to seek compensation from their travel insurance provider, Govern de les illes Balears - the Spanish equivalent of ATOL protection - or claim a chargeback through their credit card provider for services not received.