Tour Operators and Travel Agents

Discussions regarding Tour Operators and Travel Agents
Reply
Hi Radancer, I was given the same information from them this morning, just waiting to see what happens.

I think were going to be on the same XL flight as you :(
Reply
Hi Radancer

Just had word from Olympic that they won't be able to arrange replacement flights from Glasgow, so will either have to cancel and get a full refund or choose an alternative holiday at whatever the price is now :(
Graham
Reply
XL Leisure Group in administration

XL Leisure Group, the UK's third largest tour operator, went into administration early today leaving the holiday plans of thousands in tatters.

The West Sussex-based company had 85,000 holidaymakers abroad and 200,000 forward bookings, according to the Civil Aviation Authority.

All flights were immediately cancelled and aircraft grounded. XL had a fleet of 21 aircraft.

A message on the group's website said the group had entered administration as a result of volatile fuel prices, the economic downturn and a failure to obtain additional funding.

Chairman Phil Wyatt said the company's costs had gone up by $80 million year on year due to rising fuel prices.

The failure is the biggest to hit the travel industry since ILG in 1990 and follows Cheshire based operator Seguro Holidays ceasing trading earlier this week and the collapse of airlines such as Zoom and Silverjet.

Besides charter airline XL Airways, XL ran the tour operating brands TravelCity Direct, Kosmar, Aspire, Medlifehotels and Freedom Flights, the UK's largest flight-only firm. The group employed 1,700 people worldwide and carried 2.3 million passengers last year.

A separate North East-based company operating under the Freedom Flights brand is not affected.

Joint XL administrators Alastair Beveride, Nick Cooper, Simon Appell and Stuart Mackeller from Leeds-based Kroll said they were "unlikely to be able to trade the business or operate the aircraft".

Holidaymakers away on ATOL-bonded package holidays should be able to complete their holidays with the CAA arranging flights home.

But those who booked flights only are not protected along with those booked through Medlife Hotels.

A CAA statement said: "The Civil Aviation Authority and the travel industry are working together to protect customers of the XL Leisure Group UK (XLUK) after it ceased trading.

"The CAA estimates that there are 50,000 tour operator customers of XLUK abroad, and a further 10,000 abroad with XL Airways, and 25,000 with other tour operators who shared the XL flights. A further 200,000 customers have advance bookings with the XL tour operators.

"The CAA will make arrangements for those customers currently abroad who booked their holiday or flight with an ATOL tour operator to complete their holidays and fly home.

"All future departures with the XLUK tour operators and XL Airlines have been cancelled.

"Customers due to travel from the UK are advised not to go to their departure airport.

"Tour operator customers will be able to claim a full refund from ATOL."


CAA sets up emergency helpline for XL passengers

The Civil aviation Authority has set up emergency helplines for holidaymakers affected by XL Leisure Group's failure.

For customers abroad the number is: +44 (0) 2891 856547. For those in the UK with advance bookings, the number is: 0870 5900927.

A massive repatriation operation is underway following the UK's third largest tour operation going into administration.

The CAA is working with the group's administrator, Kroll, major tour operators, including Thomson, First Choice, Thomas Cook and Virgin Holidays, and airlines to ensure that UK customers currently abroad are taken care of.

Arrangements will be made to pay hotels and in-resort staff to ensure that holidaymakers that booked with XLUK tour operators can complete their holidays and fly home, according to the authority.

"Since XL Airways is no longer operating, flights to bring people home will be made with other airlines. The CAA plans to operate these flights as close as possible to the original schedule and we ask customers to be patient while these arrangements are being made," the CAA said.

The authority issued advice for those abroad and the many others due to travel.

XL ran ATOL bonded tour operations offering passenger protection against company failure but also ran flights and accommodation-only deals which carry no protection.

CAA consumer protection group director Richard Jackson said: "This is a huge undertaking and we are working closely with the travel industry to protect and bring home the customers of the failed tour operators.

"Hotels and other suppliers will be paid so that those protected by ATOL will be secure while arrangements to fly them home are made.

"Flights to bring people home will differ from their original timings, but our aim is to minimise disruption to holidaymakers as far as we possibly can.

"We ask customers to be patient while these arrangements are made."

For passengers abroad, the CAA said: "If you booked a package holiday with an XLUK tour operator or a flight with Freedom Flights then the Civil Aviation Authority's ATOL scheme covers you and you will be flown home without needing to pay any money.

"If you booked a package holiday or flight through another tour operator and were travelling on an XL flight then the tour operator covers you and you should be flown home without needing to pay any money. Please contact your tour operator.

"If you bought only a flight from XL Airways through xl.com or a travel agent, even though you are not covered by the Civil Aviation Authority's ATOL Scheme, the CAA will endeavour to bring you home with the minimum of delay.

"However, there will be a fee to cover the cost. You are not obliged to use the CAA arrangements."

For passenger yet to travel, the CAA said: "All future XLUK tour operator holidays are now cancelled and people with advance holiday bookings will not be able to travel.

"Outbound customers are advised not to go to their departure airport. Customers who booked with tour operators will be able to claim a full refund from ATOL. Information on how to claim is available on the CAA website (INVALID URL

XLUK included four UK tour operators, all of which held Air Travel Organisers' Licences:

The Really Great Holiday Company PLC - ATOL 3827

Which traded as: Cruise City

Excel Holidays

The Florida Skytrain

Transatlantic Vacations

Travel City Direct

Travel City International

Freedom Flights Limited - ATOL 5296

Aspire Holidays Limited - ATOL 6536

Kosmar Villa Holidays PLC - ATOL 1760 which traded as: Kosmar Holidays

XLUK tour operators flew mainly from Gatwick, Manchester, Newcastle, Birmingham, Bristol, Nottingham and Glasgow airports. XLUK arranged holidays in the main holiday resorts of the Mediterranean including Greece, Turkey and Cyprus, as well as the Canaries, Portugal, Malta and Egypt. It also operated long haul holidays in Florida and the Caribbean. The majority of holidays were sold through travel agents.

"People who have made advance payments will be able to claim refunds," the CAA said.

Customers are being advised to see their travel agent and ask whether their booking can be transferred to another holiday.

Agents and customers will be able to download claim forms from the ATOL website.

The group's UK airline, XL Airways (XLA), also sold seats direct to the public. People who booked with the airline are not ATOL protected. An estimated 10,000 passengers are abroad that booked direct with the airline.

Passengers with advance bookings paid by credit card should contact their card issuer or contact their bank if they paid by debit card. If they took out travel insurance, they should check whether their policy covered airline insolvency, according to the CAA.

The group also operated separate airlines in France and Germany. XL Airways France (operating under flight numbers starting XLF) and XL Airways Germany (GXL) are unaffected by this failure.

People who booked though accommodation-only arm Medlife Hotels are not ATOL protected.

"Those with advance bookings paid by credit card should contact their card issuer or contact their bank if they paid by debit card. If they took out travel insurance, they should check whether their policy covered holiday company insolvency," the CAA said.

*Further advice is available for XL Airways and Medlife Hotels customers from the group's administrators, Kroll, at http://www.xl.com or by telephone: 0800 068 8991 for customers in the UK; +44 (0) 208 242 4783 for customers abroad.

XL failure highlights passenger protection loophole

The collapse of XL Leisure Group has once again highlighted loopholes in passenger protection regulations.

Those affected who booked package holidays through the group's ATOL-bonded tour operations should receive refunds or be flown home.

But those who booked flights direct with XL Airways or accommodation with Medlife Hotels will be left out of pocket unless they had the appropriate travel insurance.

Some who paid using credit cards may be protected under the Consumer Credit Act but it depends on the card issuer.

Paul Mclean, director of International Passenger Protection Limited, which offers financial failure insurance, said: "This is a sad and time changing collapse which will have adverse effects on the travel industry for a long time to come.

"Even with oil prices now just over US$100 a barrel, the world facing long term effects from the credit crunch which is hitting banks and their ability to save financially such large operations already in financial problems.

"Luckily many passengers booked an inclusive package which should be covered through the CAA but there will be a huge number of passenger who simply bought flights only and will very likely not be covered highlighting the need once more for agents to protect themselves and their passenger with scheduled airline failure insurance."

IPP has responded by launching an online holiday financial failure protection website http://www.protectmyholiday.com where holidaymakers can purchase a financial protection policy from next Tuesday.

Around 24 airlines that have failed this year including Zoom, MaxJet, Eos, SilverJet, Oasis Hong Kong and Nationwide.

"Consumer protection has always been unclear in this respect and many of us take for granted that we are automatically covered," IPP said.

"The fact is if you book a holiday independent of a package and a growing number of people are, you could face a lack of financial protection for the elements of your holiday going bust such as the airline.

"There is a form of perception that paying for your holiday by credit card will fully protect you but you are usually only covered for transactions over £100 and if your stranded abroad, credit card companies do not cover repatriation costs which are always far more expensive than the original return ticket."

Thomson and First Choice to rescue stranded XL holidaymakers

TUI Travel operators Thomson and First Choice estimate that 10,000 XL Leisure Group holidaymakers have been left stranded without financial failure protection.

Managing director Dermot Blastland said: "Unlike customers who booked with package tour operators, customers who booked with scheduled airlines, low cost airlines and online intermediaries often do not have the benefit of financial protection.

"This means that, in the event of a failure, customers may be stranded overseas or unable to get their money back.

"We estimate that more than 10,000 people have travelled without ATOL protection and could be stranded if we and others don't step in to help."

He reiterated calls for the government to introduce industry-wide consumer protection measures.

"For quite some time, we have been lobbying the government to recognise the need for a level playing field for all providers of overseas leisure travel arrangements," said Blastland.

"We are frustrated with the government for not stepping in sooner which means we are now faced with a situation whereby those passengers who were not ATOL protected, need our assistance with repatriation and will have to pay for their flight seats home."

As angry XL travellers tried to make alternative travel arrangements, transport secretary Ruth Kelly issued a statement saying: "I have been holding discussions with my officials about this situation and both they and the Civil Aviation Authority have been monitering developments and putting rescue plans into action.

"The CAA have a wealth of experience in dealing with these sorts of situations and are puttting systems in place to get people home, while the government stands ready to provide the CAA with operational assistance should they need it.

"The industry has reacted well to this collapse of a major tour company and are assisting the CAA with the recovery of plans to ensure that affected passengers are repatriated as soon as possible."

Thomson and First Choice said they would do everything possible to assist passengers on ATOL-protected flights or holidays, whether it be by aiding their repatriation or helping those who are yet to travel in arranging another holiday and claiming a refund.

"We will also where possible do our utmost to assist with the repatriation of those who booked a flight-only or a dynamic package and were not protected.

"If available, they will be able to purchase seats home on our flights."

XL customers currently overseas will be able to continue with their holidays as planned.

"We are currently organising the repatriation of customers who booked ATOL bonded packages and are stranded in Spain, Portugal, Bulgaria, Sardinia and Egypt and these flights will take place as close to the passengers original departure dates as possible.

"Our overseas teams will be working closely with the existing XL representatives in resort to facilitate the repatriation of customers back to the UK."

Customers with XL forward bookings made through Thomson and First Choice agencies are being advised to take confirmation of their booking to any branch.

"Our retail team will be able to arrange an alternative holiday for them and assist with claiming the refund for their XL holiday or flight," the statement said.

"Customers who have booked with another travel agent are advised to visit the travel agent that sold them the holiday who can look at other options with First Choice and Thomson Holidays. Again both businesses will assist with the refund and arrange the paperwork on behalf of the customers."

A helpline for those not near a First Choice or Thomson shop has been set up at: 0871 231 5704.

Paul Riches, youtravel.com sales and marketing director, said: "At times like this it is crucial that all elements of our industry pull together to help salvage what is possible.

"We're working very closely with our agent partners and are doing everything we can to assist them with rebooking.

"We are being as flexible as possible to ensure as many customers get away on holiday as they planned to."
Renaldo Scheepers, chief executive A2B Transfers, said: "We are being as supportive as possible for our agent partners and have drafted in extra staff to help deal with the high number of calls to our offices.

"For the agents who are worst affected by the XL collapse we are offering them a dedicated manager to look after all their queries and rebookings on a direct dial number, this way we can ensure that they and their customers are looked after in the most efficient way possible.

"We are of course posting regular updates on our website for both our trade partners and direct customers, at times like this there is no such thing as over-communicating, and we are doing everything we can to keep everyone as up to date as possible."

With permission from Travelmole
Reply
I think it is disgusting that the helpline set up for those in trouble is an 0871 number.
Reply
just got this info

http://www.timesonline.co.uk/tol/travel/news/article4740540.ece
  • Edited by David 2008-09-12 16:28:29
    Post edited for copyright reasons. Weblink inserted to replace quoted text.
Reply
For any of our members in the Republic of Ireland who may be affected by the collapse of the XL Leisure Group, information is available for you on the website of the Commission for Aviation Regulation.

David :wave
Reply
But those who booked flights direct with XL Airways or accommodation with Medlife Hotels will be left out of pocket unless they had the appropriate travel insurance.


I don't think travel insurance will cover tour operators going bust
Reply
my daughter is due to fly with xl outbound in 11 days time, fleetway travel did a package to egypt for her to inc flights, hotel all inc and transfers, the outbound only flight is with xl and return with easy jet does anyone know will she get a full refund or just refund for this 1 flight, shes really worried as its so close to her holiday, ive had a look myself and theres no flights to sharm el sheik on this date except 1 thats £1200 each, shes not been able to get hold of agents yet, although shes going to try all day today, not sure of her rights, i paid the deposit of the holiday on my credit card and they paid the balance on their debit card, the dep i paid was around £425, what a nightmare
Reply
I think she would only be entitled to a refund for the XL part of the package as the return journey won't be affected.

You should be able to claim from your credit card company seeing as you paid more than £100 for the deposit, but best to speak to the travel agent to ensure she has accommodation when she gets there.

luci :wave
Reply
luci thats a worry then as how can she get out to the holiday as there isnt any flights available on her dates ? will have to see what travel agents say, looks like flight prices are increasing quickly now too :duh
Reply
I've been trying to contact Travel Republic to pay the balance of a holiday but cant access their web site, and their phone line is obviously busy. Anxious about their continuing viability. Is it worth continuing with them? Will the XL mess seriously affect this company?
pcw151
Reply
my daughter has just rang fleetway travel and theres an answer machine sayin due to it being busy they arent taking calls unless holiday is in next few days and to ring after tues, this is leaving things very late and will be only a week to her so callled holiday, i bet my then there will be nothing left to egypt grr. dont know where we stand or what we can do
Reply
You need to search, rebook and pay for a new holiday NOW. Egypt is pretty much sold out for the near future. The longer you wait there will be less availabilty and higher prices. Worry about getting the refund on the cancelled holiday later.

Yesterday we had callers telling us travel republic and On The Beach.com were either not even answering the phone or were in fact hanging up on callers as they couldnt cope. I would say most of our customers were re-booked as we were pro-active and ran reports so we could contact customers travelling in the next few days to sort their options. Very few were angry about it. Except one man that I had to bully into booking his new flights as I knew if he didnt do it there and then he wouldnt be having a holiday. He ended up paying £200 more between two, if I had let him wait the same flights by 6pm would have cost him an extra £800.

XL did themselves no favours by undercutting major tour operators in their Florida and Caribbean direct sell holidays. As soon as a customer came through with a travelcity quote I knew I had no chance of beating it. This heavy discounting and not putting aside a little profit for a rainy day (fuel prices) meant this was always a possibility. I must admit there is a part of me, with all my years experience in travel is longing to say "I told you so".

This collapse is going to 100% signal the end of loss-leading cheap package holidays from now on, with more demand from consumers who are too nervous to book directly or on the web and less flights now available for the Summer 2009 season.
Reply
thanks for that agentq, we are worried because the flight outbound was only with xl and not return she wouldnt get full refund, the problem is they dont have a lot of money as they are only 21 and shes already told me today she cant afford to find money to pay for another holiday as i suggested that. im not too happy lending her money as she doesnt pay me back very well or quickly and still owes me for this 1 grrr. ive priced up some today and prices have gone up loads to what they paid so i cant see them affording another 1. they only paid £780 5* all inc for the 2 of them , such a shame when this happens
Reply
We were booked with travel city direct, going to Florida on the 1st of november.
Don't know whether to laugh or cry. We have travelled with travel city direct and never had a problem allways good flights, service etc etc, cannot fault them.

I think what the big shame is that travel city direct gave normal working class families to go on the holiday of a lifetime, as other operators were just too expensive. As my other half said last night, it will be like the old days, we will get to where only the rich will be able to go abroad.

I actually felt sorry for the head of Excel I thought he was totally genuine when he was talking on the news.

Such a shame.
Reply
Alister Darling rejected a plan 2 WEEKS AGO in the event of XL failure,to use XL aircraft to bring people home.It would be seen as giving state aid to a failed company.Richard Branson has also said the Idea of leaving planes grounded was stupid.
Reply
My neighbour went into travel agents yesterday to price up a holiday and was told that £50 per person has been added to all holidays!!! with all companies!! since the colapse of XL.
As if prices havn`t already gone up enough.
Reply
Maybe this will be the end of ridiculously low prices of holidays that don't even cover the price of the fuel.
And the death of diy holidays.
Maybe people will realise the value of the travel agent.
The cost of everything has gone up but people think that holidays shouldn't.

Moan over
Reply
Holiday Truths Forum

Post a Reply

Please sign in or register an account to reply to this post.

Sign in / Register

Holiday Truths Forum Ship image

Get the best deals!

from our cruise, ski and holiday partners

You can change your email preferences at any time.

Yes, I want to save money by receiving personalised travel emails with awesome deals from Holiday Truths group companies which are hotholidays.co.uk,getrcuising.co.uk and getskiing.co.uk. By subscribing I agree to the Privacy Policy

No, thank you.