Britons are among 110,000 holidaymakers whose forthcoming trips have been plunged into turmoil as travel website lowcostholidays.com has been taken offline and the Low Cost Travel Group has gone into administration leaving thousands of holidaymakers facing losses.
Over 110,000 customers have paid in advance for their summer and autumn holidays.
The group was not covered by the Air Travel Organisers' Licensing agreement (ATOL) and the company admits that most of the hotel stays already paid for by customers have not been paid for by the company.
A group of around 1,000 customers also have stumped up for fights which the company has not paid for with only those covered by travel insurance able to claim back the costs involved.
Customers not covered by insurance will have to pay for their holiday again, find alternative accommodation, or not travel.
Those that already are on holiday abroad, an estimated 27,000 people, should have no problem returning as their flights have been paid for, says the company whose clients are currently in Europe, Barbados and Jamaica.
A plummeting post-Brexit pound to euro exchange rate crippled the firm’s financial planning. Many customers had delayed booking their holidays over Brexit fears which choked off cashflow at the privately owned company.
Administrators Smith & Williamson, said, “The group experienced significant market headwinds in the run up to the EU referendum as holidaymakers delayed decisions. This was compounded by the Leave vote itself and the subsequent fall in value of the pound."
Low Cost Travel issued a statement, “The directors wish to profusely apologise for the inconvenience and distress that this will cause to our customers.”
Lowcostholidays last year turned over £500million moved its headquarters to Palma, Majorca in 2013 and is not part of the ATOL scheme.
Anyone caught up in the collapse will have to attempt to get their money back through the Spanish travel authorities, their credit card or their holiday insurance.
The travel group was founded by Paul Evans in 2004. He began his career as a Club 18/30 rep and moved the company to Spain in 2013 thus taking i out of the ATOL scheme which protects British package tour customers.
Evans lives in Spain and has a house i Fulham, London.
One, less-than-pleased customer left the company management a message
"I want my £3000 back and then you can tell my kids why they can't go on the holiday can't afford to replace I have suitcaess full of new clothes and stuff I can't send back how dare you take my money 24 hours before you go bust nasty people I hope you rot in hell."
Unknowing staff were selling holidays at a 60 percent discount until the last hours of trading with many now owed up to six weeks of wages.
It is understood the group had lodged a bond with the Spanish authorities of just €50,000 but total losses will run into many millions.
The four group companies in administration are
1. Lowcosttravelgroup Limited
2. Lowcostholidays Spain S.L.
3. Hoteling.com part of Lowcostholidays Spain S.L.
4. Lowcostbeds.com A.G.
The copmpany website has information and advice for customers
