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Published on : Saturday, July 16, 2016
Over 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.