Tens of thousands face losing the money they have spent on summer holidays after budget travel firm calls in administrators
Travel company crashes leaving holidayers in the lurch
HUNDREDS of thousands of British travellers face losing their holidays - and their money - after the Lowcostholidays group went bust last night.
The online travel company had 27,000 passengers currently in resorts across the globe and more than 110,000 customers with forward bookings for the peak summer months and beyond.
And THOUSANDS will not be able to get their money back - or their holiday - as the company did not have an ATOL licence.
While the 27,000 in resort will be able to fly home as flights have been paid for already, thousands face having to fork out AGAIN to stay in their hotels or for airport transfers.
Reports of affected holiday-makers were already flooding in after the news with one person saying their neighbours had been kicked out of their hotel in Magaluf due to the company going bust.
He said: "Currently in Magaluf at the moment and our neighbours have literally just been kicked out of our hotel due to this, sad times, the hotel wanted 700 euros for them to stay."
Another traveller said they had only booked with the company three days after saving "every penny for ages" - with their travel plans now bust.
Lowcostholidays - which last year turned over £500million - moved its headquarters to Palma, Majorca in 2013 and is NOT part of the ATOL scheme that refunds Brits when British compaines collapse.
Anyone caught up in the collapse will nowhave to attempt to get their money back through the Spanish travel authorities, their credit card or their holiday insurance.
It is understood the group had lodged a bond of just 50,000Euros - but the total bill will run into many millions.
Travel Association ABTA last night warned holidaymakers to check with their airlines AND accommodation suppliers before travelling as they may well not have been paid.
They added: “Lowcostholidays are not a member of ABTA and they didn’t hold an ATOL licence. Most standard travel insurance policies do not include travel organiser failure. Check your policy and contact the debit or credit card company if that is how you paid.
“If in any doubt, contact your local Citizens Advice or Trading Standards Department.”
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Those who have yet to go away have been told to check with the lowcostholidays website - with administrators warning that some may not actually even have flights and MANY will not have accommodation they have booked and paid for.
Administrators Smith&Williamson LLP and CMB Partners last night announced that attempts to rescue the business - founded in 2004 - had failed and the company had gone into liquidation.
They blamed increased competition, terrorism in destinations including Tunisia and Egypt and the uncertainty surrounding Brexit for the company’s downfall.
Partner Finbarr O’Connell said: “The group experienced significant market headwinds in the run up to the EU referendum as holidaymakers delayed decisions. This was compounded by the Leave vote itself and the subsequent fall in value of the pound.
“Regrettably, in these extraordinary conditions, the directors had no option but to place Lowcosttravelgroup Limited into administration.
“We are now planning to meet with the appropriate Spanish Regulators and Authorities to investigate what compensation may be available to customers who have lost money due to this collapse.”
And they warned customers due to travel that it may take WEEKS to process claims - just as the peak summer holiday season kicks off.
Administrators said: “Customers must go to for further information about their position, including details of how to submit their claims in writing. These claims will be dealt with in due course. Because of the volume involved, it will take time – potentially some weeks - for emails from customers and other creditors to be dealt with.
