A Spanish registered Holiday company Lowcost Travelgroup which cultivates a carefully targeted UK trading platform aimed at C-D socio economic groups, (typically Sun, Daily Express and Daily Star readers) is in administration heading for liquidation.
Lowcost Travelgroup has called in the administrators. The move has put more than 27,000 holiday makers in multiple resorts at risk, as they are not immediately protected by the (Air Travel Operators Licence) ATOL 'get you home bond', and it is not a British firm, and will not automatically be repatriated by the CAA administered scheme, and will also be subject to paying cash for their hotel accommodation, or face ejection. (The ATOL Bond has nothing to do with, and is independent of any ABTA membership). This downloadable CAA rejection letter can form part of any claim: https://www.caa.co.uk/WorkArea/DownloadAsset.aspx?id=4294980181
The hotelier is not normally paid by the travel company until a month later, long after the customers accommodation voucher presented on arrival is put thorough the Lowcost Travelgroup payment system.
Julian Bray Aviation Analyst writes: Today those vouchers are worthless. Some 110,000 customers with future bookings are likely to lose all their money unless they can later claim back on credit cards or their travel insurance policy has a repayment clause. Publicly the failed firm is blaming a drop in advance revenues caused by the BREXIT campaign, and the relentless uncertainty generated by the EU referendum, literally 'clutching at straws' they are also blaming the fall in the pound. All of which seems to be fairly flimsy reasons for the firm not making adequate financial provision in the form of a financial bond to secure existing holidaymakers packages.
Administrators said Spanish registered Lowcost Travelgroup ceased trading on 15 July, with the loss of 120 jobs in the UK. It is thought that although no ATOL protection is in place, customers' flight bookings will probably be honoured in most cases simply as airlines demand payment to secure the seat, but having arrived at the destination, hotels will still need to be paid for, as the Lowcost holiday voucher is worthless to secure the 'paid for' accommodation, but valuable as evidence in any subsequent claim or civil legal action
Joint administrators Smith & Williamson and CMB Partners were appointed, when the firm realised they had no other place to go.
The group operated a travel booking business from 'notional' headquarters in the UK and offices in Spain, Switzerland and Poland. The firm originally 100% UK based, moved operations and its legal status to Spain last year. Giving up its UK company status. It is thought that some sixty per cent of its customers were British.
This is the Administration notice placed on the now defunct lowcostholidays website:
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