Thousands of Brits in distress as Brexit caused online travel firm to collapse

Published on : Saturday, July 16, 2016

HolidayOver tens of thousands British tourists are facing extreme chaos and harassment, as the overseas based online travel firm ‘lowcostholidays’ has collapsed on 15th July after it took a blow from Brexit.

 

 

At present, 27,000 customers of the travel firm are in numerous resorts for their holiday and 110,000 are about to travel.

 

 

Lowcost is headquartered in Palma in Majorca and it has branches in Poland and Switzerland. The firm is not under the ATOL protection scheme of UK Civil Aviation Authority and it is not even a member of Abta, the UK travel association.

 

 

The directors of Lowcost have stated that the Brexit referendum has increased competition in the market and many customers have also delayed their booking, which have eventually forced the group towards its demise.

 

 

The value of Pound has dropped against Euro, which is causing many travel agencies to lose their revenue.

 

 

Popular travel destinations like Egypt, Tunisia and Turkey have lost millions of tourists because of terror threat, which has affected the profit of the online firm.

 

 

Lowcost has published an apology in the official website, which says, “We deeply regret to announce that the lowcosttravelgroup (“LCTG”) ceased to trade on 15 July 2016, following exhaustive attempts by the group’s directors to rescue the group, which has been hampered by the recent and ongoing turbulent financial environment.’’

 

 

The British tourists, who are already in the resorts for their holiday, will be able to fly back to their home as their flight tickets are still valid. But the holidaymakers will have to pay their hotel bills themselves, before making any claim to the travel insurance companies.

 

 

The travel association Abta has stated, “We would strongly advise you to check with your travel provider if you booked through one or with your airline to determine if your flight seats remain available and to separately check with any accommodation to determine if your booking is secure.”

 

 

It has also added, “Most standard travel insurance policies do not include travel organiser failure, however we would recommend you check your insurance policy along with contacting your credit or debit card company, if that is how you paid.”

 

 

The travelers, who have not yet started their journey, may have to pay for both their flights and hotel bills. Those, who have received their flight tickets already, will be able to board the plane.

 

 

Tourists are advised to check whether their hotel reservations are still valid or not, before leaving for their holiday.

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2 Responses to Thousands of Brits in distress as Brexit caused online travel firm to collapse

  1. v.sekhar rao says:

    online booking makes the public to buy as they get generally from 2% to 5% less than the travel agents
    that is what public to say.Now who will to rescue the person who lost not only their money and have to cancell their total package including air tickets ,hotel package etc.right
    To whom they have to approach and who will refund the money what they paid.On the whole end of the day either LCTG or insurance companies have to refund the money to the travellers if not what will be their fate?.
    Now who ever have discovered online booking have to pay and now by this time they would have realised the on line booking problem?.right.

  2. While it is very sad that so many people are left stranded by the closing of Low Cost Beds (Low Cost Holidays), let’s be honest: Low Cost has not been paying their bills for months and months…long before Brexit.

    Low Cost has not paid supplier invoices going back to 2015 even though representatives of Low Cost put in writing that payment was being made on a specific date or that the ‘check is in the mail.’

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