THOUSANDS of travellers, some 27,000 believed to be on holiday now and another 110,000 who had bookings, have been left uncertain as to their rights as LowCostHolidays, one of Britain’s biggest online booking firms run from offices in Palma de Mallorca, has entered administration.
The firm’s website announced its demise on its website on Friday (July 15) and advised customers that they would have to lodge claims to attempt to get their money back. Those already abroad were warned that while their flight tickets home should be valid, they may be asked to pay for accommodation, car hire and other services booked through the company and would have to later claim these expenses back from the company through their insurance or the Balearic Islands government.
Although there was concern and customers were advised by the Civil Aviation Authority to be cautious back in 2013 when the company, run by business tycoon Paul Evans, relocated to Mallorca, LowCostHolidays stressed at the time that although it had left ATOL, a British body which protects travellers when firms go bust, it was covered by a similar Spanish system.
The news came as thousands of people prepared to jet off on holiday after schools in the UK break up next week, and left almost 500 employees, around 120 of them posted at Gatwick airport, redundant.
Finbarr O’Connell, a partner of accountancy firm Smith & Williamson which has been appointed as administrator, blamed the death of the company on Brexit.