Monday, December 26, 2011

24 travel companies collapsed in 2011

Research commissioned by Kelkoo Travel has found that 24 holiday companies collapsed in the last 12 months, leading to 74,000 holidaymakers reclaiming £26 million.

The figure was a slight improvement on 2010, when 29 companies failed, impacting 189,000 travellers and resulting in £47 million worth of compensation claims.

The research, produced by the Centre for Economics and Business Research, found the average traveller waits up to four months for a refund.

Despite the significant amount of money that can be reclaimed, more than 6,000 travellers (8%) have missed out completely on compensation payments to which they are entitled.

The research highlights that the largest failures over the past 12 months have occurred in the peak season when customer bookings and deposits are at their highest.

Kelkoo Travel managing director Chris Nixon said: “Economic conditions in the holiday market have been incredibly challenging in 2011 with travel companies having to contend with factors such as rising fuel costs and the impact of air passenger duty. But it is reassuring that significantly less holidaymakers were affected by travel company collapses this year compared to 2010. Since 2007, when APD was introduced, package holiday prices have increased by 20%. On top of this, there has also been the backdrop of weak consumer spending and income growth that have dampened demand. All of these factors have had a direct negative impact on travel companies. Unfortunately, 2012 will see other holiday companies go to the wall, so travellers booking their summer holidays over the next few weeks should check that they book with an ATOL-protected company, so they can be sure that if their travel company does collapse, then they will be compensated.”

source: www.travelmole.com

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