UK travel company collapses continue

Two more UK travel operators failed this week, meaning that thousands of British holidaymakers could potentially lose their holidays. Both companies cited the difficult economic environment as the reason for their collapse.

Crawley-based Pure Flights and the Van Haydon Travel company of Leicester both ceased trading earlier this week.

Reductions in service also had an impact on UK travellers this week. First Choice withdrew services to the Bahamas because of a lack of demand and Virgin Atlantic is reducing its flight frequency on the Washington, New York, Caribbean and Bombay routes. XL Leisure, the UK’s third-largest holiday operator, has announced that it is engaged in urgent discussions about refinancing.

These are the latest in a series of travel companies facing severe financial difficulties. Last week, trans-Atlantic budget carrier Zoom Airlines folded, as did the Bristol-based stag party company, Brilliant Weekends. Two specialists in Mediterranean holidays, Greece and Cyprus Direct, as well as Irish-based Great Escapes have also become victims of the current economic climate.

The demise of Zoom raised renewed demands for scheduled carriers to be brought into the ATOL consumer protection programme.

The Association of International Tour Operators (AITO) and the Association of British Travel Agents (ABTA) both said the current financial difficulties facing airlines has raised the urgency of providing protection for all passengers, and not only those who made their bookings through tour operators.

www.abta.com