Games stay-at-homes send travel firms bust
Monday 05 November 2012
The number of travel companies going under in the UK in the last 12 months has doubled as the recession, Jubilee celebrations and Olympics kept British holidaymakers at home.
In the 12 months to the end of September, 86 travel agencies and tour operators became insolvent. That was up from 40 in the preceding year, according to accountants Wilkins Kennedy.
Anthony Cork, a partner at Wilkins Kennedy, said: "Summer 2012 had the feelgood factor for most of the UK but unfortunately travel agents and tour operators have had little cause for celebration.
"While the Jubilee and Olympics were presented as a tonic to the double-dip recession, they actually compounded the financial problems in the travel sector."
Continuing uncertainty over the political and economic state of popular tourist destinations such as Greece and Egypt has also hit holiday firms' bookings. Mr Cork said: "A lot of struggling travel agencies needed an exceptional 2012 to help them keep their heads above the water.
"There were expectations of a spike in holiday bookings as Britons tried to 'get away from it all' but this spike either wasn't as large as expected or it failed to materialise."
Recent holiday firms that have gone into administration include: •The five-branch travel agency Enjoy Holidays, which went into administration in August owing creditors up to £1.2m
• Astonbury, trading as Sky Jet, which became insolvent last year after the company had asked passengers on its flights to pay £23,000 to continue their journeys.
• Shenoy & Co, trading online as Reliable Holidays and Economy Travels, which went into administration with a reported 2,165 advance bookings despite having a licence for just 500 passengers. Its failure is said to have cost the Air Travel Trust fund more than £750,000.
- 2 Watch the Supermoon live: How to see the brightest Moon of the year tonight
- 3 Hulk Hogan wants to be Donald Trump's running mate in the US Presidential election
Caitlyn Jenner car crash: Driver who died in collision sued by surviving passengers for $18.5m
Watch the Supermoon live: How to see the brightest Moon of the year tonight
Hulk Hogan wants to be Donald Trump's running mate in the US Presidential election
Blood Moon and Supermoon: September to bring brightest – and dimmest – full Moon of the year on same night
Turkey duped the US, and Isis reaps rewards
Climate change: 2015 will be the hottest year on record 'by a mile', experts say
'Women only' train carriages: Jeremy Corbyn unveils radical move to tackle public harassment
Black holes are a passage to another universe, says Stephen Hawking
Iain Duncan Smith 'should resign over disability benefit death figures', says Jeremy Corbyn
Tony Blair attacks Jeremy Corbyn's 'Alice In Wonderland' politics
Theresa May says migrants should be banned from entering the UK unless they have jobs lined up
iJobs Money & Business
£25000 - £30000 per annum: Recruitment Genius: From modest beginnings the comp...
£35000 - £40000 per annum: Recruitment Genius: From modest beginnings the comp...
£15000 - £65000 per annum: Recruitment Genius: This is an exciting opportunity...
£18000 - £20000 per annum: Recruitment Genius: This is a fantastic opportunity...