As of 15th July 2016 the budget travel agency, Lowcostholidays, have now gone into administration. This will affect 27,000 people who are currently on holiday and a further 110,000 people with future bookings. Customers are being urged to check flight and hotel reservations. Lowcostholidays in administration could be just the first of travel agencies forced to close due to the weakening of the British pound.
The company, of which around 55% are British customers, have published a statement on their site stating the recent administration is due to the current financial climate in the UK. This is despite last year generating a total revenue of £477 million, and still making a loss of £47,000.
Lowcostholidays In Administration – Are You Affected?
Holidaymakers who are already in a resort will most likely have to pay directly, despite already paying Lowcostholidays. Advise is then to try and claim back through any holiday insurance in place or credit card protection. For customers who have booked and are waiting to travel, hotels will not be paid. These customers should check directly with the relevant airline if flights have been confirmed.
The closure of Lowcostholidays highlights that even an established company could go into administration even though being established in the market. Where possible package holidays, flights or hotels should be paid for on a credit card to increase protection, and holiday insurance should be taken out immediately after booking.