Group Travel Ltd in the West Midlands has ceased trading, prompting a warning to group travel organisers to check financial protection offered by companies when booking.
The coach holiday company stopped trading last week and an announcement on the firm’s website on Friday said a liquidator – Paul Brindley, Midlands Debt Recovery – had been appointed.
There have been reports that the firm was not a member of ABTA, the Coach Tourism Association (CTA), the Association of Group Travel Organisers (AGTO) nor the Confederation of Passenger Transport UK (CPT).
Many customers are reportedly out of pocket after paying for trips that have been cancelled, with no guarantee they’ll get their money back. The company ran group holidays in the UK and Europe as well as day trips.
Brindley told Group Leisure & Travel that the Stourbridge-based company, which was established in 1982, ‘didn’t have bonding but that the directors were doing what they could to help those who had booked trips’.
The situation raises the issue of financial protection for group travel organisers who might find themselves liable in such circumstances.
Harold Burke, sales director of The UK Holiday Group, commented: “As an industry we need to be confident that operators have to follow a standard that ensures they are regulated and have financial protection in place for their customers.”
Burke, whose contributions to the group travel industry were recognised at the Group Leisure & Travel Awards in 2017 with the Outstanding Contribution to Group Travel Award, spoke about what GTOs should be looking for.
“What has happened with Group Travel Ltd highlights the importance for group travel organisers in checking financial protection offered by tour operators. No one wants to be left out of pocket, especially when it comes to travel – something everyone looks forward too that can be very costly.”
Brindley said all creditors of Group Travel Ltd would be notified by letter about what they need to do.
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