Three more UK travel companies fail

On Friday, Cambuslang Travel, based in Glasgow, ceased trading, according to the ABTA, which represents close to 1,500 travel agencies.

Launched in 1984, the agency had branches in Cambuslang and East Kilbride.

A Leeds-based travel agency, the Package Holiday Company, has also become insolvent.

These two newest failures were announced following the news that Newbury-based Windsor and Neate, a company that has offered sun, ski and cruise holidays, also failed.

A spokesman for the ABTA, Sean Tipton, noted that clients currently on holiday with any of the three agencies would not be affected, and that claims against the travel companies are being handling by Cega.

According to Tipton, most holidaymakers that have booked trips will not be out of pocket, as the firms all travel agencies rather than tour operators. Cambuslang Travel, however, did sell independent trips to London as well, so a small number of cancellations are expected following its closure.

For 2009 to date, the number of ABTA-registered travel agencies that have failed has reached 27, which is the number of firms that collapsed during the whole of 2008.

Tipton said: “The number of insolvencies is slightly above average. But that is to be expected during a recession.”

He went on to say: “Business is around 10 per cent down on last year, though we have seen a flurry of late bookings.”

Thanks to www.telegraph.co.uk for the above quotes, for more information on this article please visit their website.