Number of travel company failures rises again

Sunday, 14 Apr, 2014 0

The number of travel company failures increased by 45% last year when 77 travel agencies and tour operators went out of business, according to accountancy firm Wilkins Kennedy.

It blamed the demise of high street shops on the growing number of "internet-savvy" customers who prefer to book their own trips online, using price comparison sites and online retailers.

The trend had been further fuelled by the economic downturn, it said, as this had prompted customers to forgo longhaul holidays in favour of holidays closer to home, which are easier to resarch online.

It said that in the past year to the end of March, 77 travel agencies and tour operators went bust, up from 53 in the previous 12 months, which in turn was a 36% rise on 2011.

The latest failure listed by the Civl Aviation Authority was Mapmart, trading as Alternative Travel and Turkish Riviera Golfing Holiday, on Aprl 9. It specialised in holidays to Turkey.

Wilkins Kennedy said smaller, independent agents were the ones suffering most from the rise of the "internet-savvy, price-sensitive" holidaymakers who no longer need the services on a traditional agent.

However, ABTA disputed the findings of the accountancy firm. Spokeman Sean Tipton said: "The total number of both ABTA and ATOL failures over this period was 17. Since ABTA and ATOL represent the vast majority of travel agents and tour operators in the UK it is very difficult to see how the figures quoted by this firm of accountants can be anywhere near accurate. We have contacted them to clarify how they did their research."

Linsey McNeill

Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk

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