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No Holidays 4 U: 50,000 Summer Breaks In Tatters As Travel Firm Goes Bust

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http://www.dailymail.co.uk/news/article-2021950/Holidays-4U-goes-bust-Headache-12-000-holidaymakers-abroad-50-000-summer-breaks-tatters.html

Up to 50,000 families may have no summer holiday this year, after the travel firm Holidays 4U went bust this morning.

The budget Turkey specialist, which also traded as Aegean Flights, went into administration today after advising the Civil Aviation Authority that it had no more credit. The regulator responded by calling it is bond and security.

We went with these last year on holiday.

Looks like a lot of people won't be having a stress free break.

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Seems to be a yearly occurence, travel firms going bust. Another boost for the likes of Ryanair, as people decide they may as well book the flight and accommodation themselves?

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Seems to be a yearly occurence, travel firms going bust. Another boost for the likes of Ryanair, as people decide they may as well book the flight and accommodation themselves?

its pretty bad if they are going bust at peak season though

in the past i remember they used to go bust in the autumn when all their creditors (hotels, tour operators etc.) needed to be paid

right now a tour operator should be close to peak cash: they've been paid for all the holidays and only have to pay out for the planes and fuel up front

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right now a tour operator should be close to peak cash: they've been paid for all the holidays and only have to pay out for the planes and fuel up front

A lot of credit and debit card companies now are not releasing money to airlines and holiday companies until after the flights/holidays have taken place, in order to cover themselves against having to give Consumer Credit Act refunds. So it maybe that for this company, the holiday peak is actually the most cash strapped time, because they're having to pay for hotels, plane fuel etc., but they won't get paid themselves until the holidaymakers are back home again.

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its pretty bad if they are going bust at peak season though

in the past i remember they used to go bust in the autumn when all their creditors (hotels, tour operators etc.) needed to be paid

right now a tour operator should be close to peak cash: they've been paid for all the holidays and only have to pay out for the planes and fuel up front

I understand your logic, but I can remember tour operators going bust in the summer right back to the 70s. In fact it was in August 1974 that the Court Line group collapsed - this led to a change in the ATOL compensation arrangements.

wikipedia

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A lot of credit and debit card companies now are not releasing money to airlines and holiday companies until after the flights/holidays have taken place, in order to cover themselves against having to give Consumer Credit Act refunds. So it maybe that for this company, the holiday peak is actually the most cash strapped time, because they're having to pay for hotels, plane fuel etc., but they won't get paid themselves until the holidaymakers are back home again.

that would make sense

I remember that this is what did for eclear a payment processing firm that specialised in holiday companeis and airlines

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that would make sense

I remember that this is what did for eclear a payment processing firm that specialised in holiday companeis and airlines

makes no sense, they charge the operator for each and every card transaction, probably 2.5%...that would buy CDS of any merchant bankers money.

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Also in the news

Thomas Cook chief executive leaves 'with immediate effect'

The chief executive of Thomas Cook has been ousted with a £1m pay-off following shareholder anger over a dire profits warning three weeks ago that took £300m off the holiday group's value.

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8680143/Thomas-Cook-chief-executive-leaves-with-immediate-effect.html

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What I found surprising is that the ITV reporting suggested the firm only had 18 employees. An interviewed travel writer also suggested they were selling holidays below cost?

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What I found surprising is that the ITV reporting suggested the firm only had 18 employees. An interviewed travel writer also suggested they were selling holidays below cost?

If that's the case no wonder they've gone bust.

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What I found surprising is that the ITV reporting suggested the firm only had 18 employees. An interviewed travel writer also suggested they were selling holidays below cost?

Its a common scam in the IT business.

remember when magazines were 400 pages thick with advertisers taking 20, 30 pages at a time...now its all on the internet, and the business model is simple:

Sell a high value product the client pays up front for, sell it for cheaper than your rival, and cash flow will rocket...you may make a loss on many sales, indeed, this is the plan to boost your sales....the ONLY thing that keeps this scheme alive is constant growth.

The day sales fall is the mark that next month you will be deciding which suppliers to pay and which not to.

Then bust.

Of course, the "profits" have all been spent long before.

These days, Pcs are cheap...so what fits the bill...yes, £2000 holidays paid up front and now cheap internet advertising and press releases.

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Is there ANY way of checking tour operators out? Let's say private ltd company? CompNies house? What else?

Stick to big companies? I only use GreatLateDeals... a part of travelrepublic.

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  • 334 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
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      • Even
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      • up 5%



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