It’s tough times for tour operators and holidaymakers! XL Leisure Group has become the latest travel company to close shop.
One of UK’s largest tour operators has gone into administration leaving thousand s of holidaymakers stranded. XL Leisure Group announced that it was grounding all flights after going into administration having failed to secure a rescue package.
Like other tour operators that have gone burst in the past few months, XL Leisure Group said it had been hit by rising fuel costs and the credit crunch.
XL Leisure Group chief executive Phil Wyatt said he was ‘devastated’ at the company collapse. He also added that he does not believe the company should have been forced into administration.
Administrators Kroll said customers who booked packages with XL Leisure Group’s tour operators were protected by the CAA’s ATOL scheme. But people who booked flights with XL Airways were not covered.
Kroll said: “Customers who bought a flight from XL Airways are not protected, however we understand that the CAA will endeavour to offer these customers flights, but there will be a fee to cover the cost.”
These are surely frustrating times for holidaymakers, 67 000 holidaymakers are stranded abroad and some stranded at Gatwick spoke of their frustrations at the lack of information given after XL cancelled it’s flights.
Holidaymakers are now faced with the extra costs involved in making new travel arrangements. Sad!
But why should the ordinary man be the one to lose out? Companies do not go into administration overnight, and the operators surely new something was wrong yet they still continued to take people’s money.
Legislators should make sure laws are changed so that people are protected from the business operators. Have we come to a time were travellers should check the financial position of a company before making travel arrangements with them, just in case they are about to go into administration?
Feel free to share your views.
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