One of the country’s best-known short break operators, Travelscene, collapsed last week — and experts warn it could be the first of many travel companies to go under in the next month.
Alan Bowen, who is a legal adviser to the Association of Atol Companies, which campaigns for better financial protection for holidaymakers, says: “Travelscene’s failure is symptomatic of a difficult year. I think it will be the first of a considerable number of crashes in the next month. Operators have been waiting for the market to return and the reality is, it hasn’t.”
Travelscene had been operating for nearly 40 years and was expected to carry about 15,000 people this year. About 200 are abroad at the moment. Those on packages with flights will be protected by the company’s Air Travel Organisers’ Licence (www.atol.org.uk); those yet to fly will receive a full refund. People with rail-or ferry-based packages should contact the Association of British Travel Agents (020 7637 2444) to arrange repatriation or a refund.
“Travelscene was a good company, but city breaks are particularly susceptible to the impact of internet websites,” says the Association of Independent Tour Operators. “EasyJet and Ryanair now carry 24m people a year, most of whom will have booked independently. Travelscene was regulated to the hilt, as all traditional operators are, while the no-frills airlines and internet companies have no such financial constraints. It is unfair but unsurprising that package operators are going out of business.”
Our advice? Ask what protection is in place before booking and, if your operator is not bonded, pay by credit card. Provided the bill exceeds £100, you can claim some compensation if the operator fails.
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Sara Macefield