THOUSANDS of holidays could be cancelled after the company that owned travel companies including LateRooms.com went into administration.
Malvern Group announced that LateRooms, Super Break and Malvern Travel Technology Limited have all ceased trading with immediate effect on August 1.
Thousands of people are thought to be affected by the collapse.
According to ABTA, Super Break has around 250 employees.
Around 20,000 bookings involving 53,000 people are thought to be affected, with ABTA’s website advising that those who are not travelling may see their holidays cancelled.
Fortunately those who are already on holiday should be able to continue as normal and most should be able to claim back any costs.
It’s not known how many bookings LateRooms had at the moment – their reservations are not covered by ABTA but could be covered by another provider.
While any booked rooms should be confirmed, holidaymakers are advised to contact the relevant hotels to check.
An ABTA spokesperson said: “The vast majority of holidaymakers’ arrangements will be covered through one of a number of different types of financial protection.
“The majority of holidaymakers’ package bookings are covered by ABTA financial protection, while a significant proportion of other arrangements are covered by other types of protection including ATOL and credit card arrangements, depending on the type of booking.
“These customers will either be entitled to a refund, or, if they’ve booked through another travel company, they should contact them to discuss options which may include continuing with their booking, re-booking or alternative arrangements.”
ABTA advice on what happens next
Customers who are currently on holiday
Customers who are currently on holiday on ABTA protected packages (rail or other non-flight packages) should be able to continue with their trip as planned, but can contact ABTA if they encounter any difficulties with arrangements.
Customers who are on holiday on ATOL protected packages (flight-based packages) should be able to continue with their trip as planned but if they encounter any difficulties should contact the CAA.
Customers who are yet to travel
Customers who have booked with Super Break should visit abta.com/superbreak where we have specific guidance on next steps and how to progress a claim through ABTA, ATOL, the consumer’s card provider or through another type of financial protection scheme, if required.
In a statement, the group said: “Following news of Cox and Kings India’s loan default a month ago, the situation has deteriorated rapidly resulting in the withdrawal of any further funding for Malvern Group.
“The management team recently appointed advisors from KPMG to undertake an accelerated sales process to ensure further investment, and have engaged with our principal bankers to secure interim funding.
“Unfortunately, given the short time frame enabled by our cash position and despite interest from potential purchasers, we have been unable to secure bank support or a sale of the business.”
Both LateRooms and Super Break advised their Twitter followers to check the Malvern Group’s website for the latest information – although their website has since been taken offline.
Malvern Group, which is owned by Indian tour operator Cox & Kings Ltd (a separate company from Cox & Kings Travel Ltd UK), had been trying to sell its business and secure investment earlier year without success according to Travel Weekly.
It had enlisted the help of KPMG, but had defaulted on a debt payment, which led to the announcement today.
The company is expected to appoint administrators on Friday.
What are my travel rights if a firm goes under?
You need to check if your holiday is ATOL protected.
It’s a legal requirement that every UK travel company that sells package holidays with flights holds an Air Travel Organisers’ Licence – or ATOL.
ATOL protection means that customers won’t be stranded abroad if the company goes bust and they will be refunded for trips that can’t go ahead.
If your holiday doesn’t include flights, you could still be proteced through ABTA.
You can find out more here.
Holidaymakers who booked with a credit card may also be able to get a refund for cancellations from their card providers under Section 75 of the Consumer Credit Act.
This is because card providers are jointly liable when a purchase or service isn’t fulfilled but it only kicks in if you paid at least £100 on credit card.
If you paid less than £100 on credit card or if you paid for your flights on debit card, you may be able to get a refund via a scheme called Chargeback but there’s no guarantee.
Also, check your travel insurance to see if it covers travel company failures – just be aware you’ll likely have to pay an “excess” before you can get any money back.
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A number of travel firms have gone into administration in recent years.
Just earlier this year, Wow Air collapsed, leaving many passengers stranded.
Sun Online Travel has contacted Malvern Group for additional comment.