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What next for the travel industry?

10:34 UK time, Sunday, 18 July 2010

The Civil Aviation Authority has said it is doing all it can to fly people home after the collapse of Greece and Turkey travel specialist Goldtrail. Are you worried about your holiday?

About 16,000 Goldtrail customers were abroad when the company went into administration on Friday afternoon, while a further 2,000 were scheduled to fly from the UK over the weekend.

Goldtrail is the 11th holiday firm to collapse this year, according to the CAA.
2010 has been a difficult year for the travel industry as it recovers from the after affects of the volcanic ash disruption, estimated to have cost it more than £1bn.

What will be the long term impact of this year's events on our ability to travel by air? Are the days of cheap holidays numbered? Do you work in the travel industry?

Thank you for your comments. This debate is now closed.

Comments

Page 1 of 2

  • Comment number 1.

    This kind of incident (which seems to have happened virtually every summer for several years, now) underlines an old maxim: you can't get anything for nothing. If people really want to penny-pinch when booking holidays, they have to accept the risk of their holiday provider going bust because of excessive cost-cutting.

    If price really is an issue, then there is always the option of going somewhere in Britain.

  • Comment number 2.

    David Hazel sums up the situation perfectly....you get what you pay for. This not to demean people who have to turn to these companies through financial restraints but given the current austerity measures I would expect to see a repetition next year and thereafter.

    Another option is to put your own package together using low cost airlines and hotel discounts.

  • Comment number 3.

    All these so called travel experts saying Goldtrail were a cheap company so customers can't be surprised at their collapse. Are these the same experts who are constantly telling us how we should shop around for the best price?

  • Comment number 4.

    This comment was removed because the moderators found it broke the house rules. Explain.

  • Comment number 5.

    Here's a novel idea, perhaps the governement doesn't want people to travel?

  • Comment number 6.

    It must be nice to be not only rich, but wise.
    The price of holidays from the UK has risen enormously over the last few years largely due to the problems with our economy and currency. However, another price push is due to deliberate confusion pricing policies borrowed from the utilities and insurance sectors. Many holidays is overpriced in the brochure to allow for later discounting. Everyday I get Emails from coach holiday firms offering me 20% off short trips abroad. Also, the actual cost of the holiday can rise substantially if things that used to be included, like transfers, are factored in. Plus, as a great many popular destinations, like India, have rising living standards, holiday costs to what should be cheap countries is rising faster than UK inflation. Obviously, in a time of belt tightening here, the New Year booked family summer holiday is seriously under threat. There is a little bulge in long haul holidays as pensioners divest themselves of cash which is losing value at a terrific rate. When they have spent up, and everyone else is working longer hours to make up their reduced wages, the outlook for holiday companies is indeed bleak.

  • Comment number 7.

    Unlike #4 I have little sympathy for tourists. I hope none of my taxes is going into bringing these people back/compensating for lost bookings. This is a lifestyle choice and as such should be paid for by the industry and the people who want this lifestyle. In this age of high unemployment and financial difficulties wouldn't the money be better spent in this country? But then tourists don't have that much intelligence really, do they?

  • Comment number 8.

    It's obvious that this Industry will be under rising pressure as our economic 'Cut-backs' are increasingly implemented and the recession in-general, bites harder for Europe etc.
    UK Holiday-makers seeking 'cut-price' travel are equally facing the rising threat of 'collapses' within the Industry and more 'strandings' abroad.

    It's time for this Industry - and our Government - to concentrate FAR more on attracting 'inward-Tourism' from non-recession hit Countries - WITHOUT allowing more economic immigrants in.

    The Tourism industry is trying to operate on LESS than a 'shoe-string, but in this, there is also the danger that they may be tempted to go TOO far in trying to cut costs in terms of Aircraft maintenance, Safety and Security costs.

    Holiday-makers - be wary and be Insured...

  • Comment number 9.

    "But then tourists don't have that much intelligence really, do they?"....Sue Doughcoup.

    Rather an unintelligent comment I would think. We all know that travel broadens the mind and therefore prevents us from becoming 'little Englanders'. If she is inferring that package holiday tourists are of lower intelligence because they need to be herded like sheep then I would warn her that she is again on rather dodgy ground. There may be some in that category but the whole point of this debate centres around the fact that in difficult times people have to choose wisely.

  • Comment number 10.

    This is the chance you take when booking a holiday. There are plenty more of these companies just waiting to go bust. Why? Because there are too many "cheap" companies competing for decreasing numbers due to the economic slump and terrorist concerns in some countries.

  • Comment number 11.

    Why are so many people so shocked that another holiday company has gone to the wall...it seems to happen every 6 months or so somewhere in the UK...so who is next?

  • Comment number 12.

    I'd like to know where these mythical cheap flights and cheap package holidays can be found. I've been looking for them for over 20 years and I constantly hear about them on TV but I have never yet found one. It's just hype to fool us into wanting to buy a holiday.

    This company going bust is obviously terrible - particularly as it means even more UK jobs have gone forever - but the industry will continue. It will have no long term effect.

    More unemployed Mr Cameron - so far I've seen you do NOTHING to create new jobs anywhere except Afghanistan where you plan to increase financial aid from UK taxpayers by 40%. What an incompetent government we have.

  • Comment number 13.

    Speaking as a customer who has lost £800 from the collapse of Globespan 10 days before Christmas am I surprised - heck no. Why? nearly 7 months on and where am I? I still haven't received a button of my money, even though I wasn't due to fly with Globespan until August 2010!!

    Apparently I will be lucky to recoup £40 of my £800 which "Globespan" or its administrators now have. And for those who post comments about travel insurance, my annual travel insurance apparently didn't have a specific clause to cover airline failure.....

    Yet again another travel firm has collapsed. The Government should be rushing through laws to protect customers who pay for goods with maestro / switch rather than rushing through laws for reducing pensions to buttons!!disgusted....

  • Comment number 14.

    I don't see that this particular failure justifies asking 'what next for the travel industry?' It's going through a bad patch but the big firms will weather the storm, and quite a few of the small ones too, because they will have been cautious and will not have under-priced nor relied on volume alone to see them through
    I'm surprised that so many people don't think of the possibilities of their tour operator going bust, or perhaps they think that because the firm has an ATOL everything's OK. But it's not; compensation won't cover everything and the inconvenience can be enormous.
    It's not unreasonable to suggest that if someone's so poor they need to go to Turkey because the eurozone's too expensive, then wouldn't it be better to have taken a holiday in the UK?

  • Comment number 15.

    Its like everything in this country we want everything on the cheap. Its going to happen again and again till travel companys start to charge the real price for these cheap holidays.

  • Comment number 16.

    The stark reality is this.

    You may see a plane and travel on a plane to reach your destination but some of these low cost businesses operate on a shoestring.

    If you use them/travel with them, in comparison its like choosing either being taken to Turkey in a rowing boat, in comparison to a passenger ship.

    One is a bit more reliable than the other, namely because it costs more.

    If you buy cheap goods from £1 shops,then dont expect such high reliability, whether deodrants or kids toys. With deodrants you may get as much as 50% use from it before it fails, with toys, they may last as much as 5 minutes of use.
    Cheap products services are generally cheaper for a reason, reliability is not one of their strong points.

  • Comment number 17.

    Holidays are necessary for mental well-being, but going abroad for holidays is a lifestyle choice, not a necessity.

    If you're so financially restrained that you have to use iffy travel companies to travel abroad, then why go abroad at all?

    Under those circumstances it would be far more cheaper and safer to go on holiday locally.

  • Comment number 18.

    This is the chance you take when booking a holiday. There are plenty more of these companies just waiting to go bust. Why? Because there are too many "cheap" companies competing for decreasing numbers due to the economic slump and terrorist concerns in some countries.
    ----------
    Over the years there have been plenty of not so budget orientated companies go under as well.

    It is very easy to be wise after the event and blame the customer for lack of foresight.

    Of course I have sympathy for the customers and the employees of the company, having been in the same position myself before.

    However, I understand that this was an open secret in the travel industry for sometime so I think it has to be asked why a travel agent would not act in the best interests of its customers the passengers and advise of the possible problems with booking via this company

  • Comment number 19.

    deanarabin writes........"if people are so poor that they need to go to Turkey because the eurozone's too expensive, then wouldn't it have been better to have taken a holiday in the UK?"

    This just shows the unintelligent ignorance of so many Brits. Turkey is a wonderful place full of culture, friendly people, great beaches weather and food. It is an ideal place for a holiday and still represents value. It also remains extremely popular.

    To propose that the EU is the only desirable holiday destination (yes, let's forget the rest of the world ) and that even staying in the UK is better than going to Turkey (for reasons which I suspect she harbors but will not voice) is illogical and offensive.


  • Comment number 20.

    I don't get this thing of the Turkish hotels asking for payment direct from people staying with them. The hotels claim they haven't received money from Goldtrail?

    If the hotels have not received payment from Goldtrail, why did they allow people to check in and why did they not ask for payment then?

    Sounds a bit dodgy to me.

  • Comment number 21.

    It's interesting to read all the comments so far, but not a single one of your correspondents has mentioned the magic word - INSURANCE.
    There are enough insurance policies that cover such an event, and then the travellers wouldn't have all the worry about what happens when the company goes bankrupt.
    It would add a few quid to the cost of the holiday, so it's not worth it they'll say. So, for the value of a few bottles of beer they'd prefer to live in uncertainty.
    By the way, why can't the government force the travel companies to put the monies paid by people into an escrow account with money being withdrawn from there only to pay the suppliers. So if they go bust, the money is still there or already with the supplier.

  • Comment number 22.

    This just shows the unintelligent ignorance of so many Brits. Turkey is a wonderful place full of culture, friendly people, great beaches weather and food. It is an ideal place for a holiday and still represents value. It also remains extremely popular

    .........................................................

    A lot of these people do not go for the culture and the friendly people. I doubt many see the blue mosk from the inside or the outside. Turkey is like Egypt was a few years ago somewhere cheap outside the euro zone it won't be long before the Turkish people get fed up of drunken english wanting chips with everything it will then join a long list of countrys where the english are unwelcome

  • Comment number 23.

    Anyone who buys such cut-price holiday packages should realize that you get what you pay for and that, if something sounds too good to be true, it's because it usually is. Unfortunately, the majority of people who opt for cheap packages don't think like that - the sun and the booze are what matters to so many, sadly.

    The sooner firms like these go bust and the price of air travel is increased to reflect holidaymakers' carbon footprints the better.

  • Comment number 24.

  • Comment number 25.

    The travel industry needs to do something, as they're as bad as this comment.

  • Comment number 26.

    The CAA need to be financially aware of what these companies are doing. Only last week, even up to the day before they went bust, people were paying thousands for holidays that are not going to happen.
    If more emphasis was made on watching their financial postion, thousands wouldn't be trapped abroad or even be without their holidays.

  • Comment number 27.

    Re - post #22

    What is a 'mosk' and do they come in any other colour than blue?

    Knownought

  • Comment number 28.

    Why are these travellers stranded if their travel agency goes broke ? They already paid the agency which was granted credit by the airlines and hotels. Does it mean if I paid premiums to an insurance agent and he becomes bankrupt before handing over my premiums, my policy will not be paid. That sounds ridiculous.

  • Comment number 29.

    This episode is simply further evidence of the scant regard for regulation of private companies. We have had this problem for decades, with, every so often, a movement towards more stringent controls via bonds, insurance or whatever. All of this would be superfluous were companies properly monitored at all times for fitness of purpose.

    Surely the most callous person can see the damage a 'broken' holiday can do to a hardworking person or family? Is that acceptable to anyone in the travel industry, because, if it is, then they should come right out and say so at the head of every bit of advertising they do? So how about some serious regulation of companies instead of pussyfooting around?

  • Comment number 30.

    I think the regulators ought to make checks on tour operators more often as they have clearly been in trouble for a while and knew this was going to happen. They collect money from people booking their holidays in advance then can't pay their suppliers when the holidays are being taken around this time of year. We have to accept that companies will always face difficulties that can't be avoided however the scale of the problem could have been smaller if the management hadn't kept quiet about the financial problems. Companies don't go bust just like that, someone knew this coming for a long time and did nothing about it.

  • Comment number 31.

    How can a major British Tour Operator be so close to bankruptcy and yet the public is not advised? Does this not suggest the need for some bureaucratic mechanism? How can a major British Tour Operator declare bankruptcy and yet have tourists stranded, presumably in Turkey and Greece, wondering what the Heck happened?
    It’s nice that there was communication between BBC and the UK Civil Aviation Authority (CAA), but it would have been nicer if someone somewhere had thought to communicate with the tourists.
    Goldtrail is based in New Malden, in SW London; it specializes in operations in Greece and Turkey. How could this major British Tour Operator go insolvent on Friday with an estimated 16000 of its customers in Greek or Turkish limbo?
    I’ve read that as mnay as 50000 planned, saved, booked, and began their trips-of-a-life-time, and now they've been affected by this bankruptcy.
    It’s good that the The CAA is arranging to fly customers home, that there are no more outbound flights, but I’m sure most of these affected tourists would have made other arrangements had they known that there was trouble brewing at Goldtrail. After all, there had been rumors for several months that Goldtrail was not doing well.
    The CAA had “informally” predicted that smaller tour operators could collapse.
    This may be part of the rason that many travelors enjoyed sub-standard accommodations and other ill-treatment on their “holiday”.

  • Comment number 32.

    At 1:43pm on 18 Jul 2010, banda78720 wrote:
    (of my No14)
    "This just shows the unintelligent ignorance of so many Brits. Turkey is a wonderful place full of culture, friendly people, great beaches weather and food. It is an ideal place for a holiday and still represents value. It also remains extremely popular.
    To propose that the EU is the only desirable holiday destination (yes, let's forget the rest of the world ) and that even staying in the UK is better than going to Turkey (for reasons which I suspect she harbors but will not voice) is illogical and offensive."
    ------------------------------------------------------------
    Did you read what I wrote before the Turkey reference, or did you find it too advanced for you? Yes, I do know where Anatolia is, and want to visit Ephesus - when I can afford to do it properly. The point I was making about relative foreign exchange costs, and Turkey in particular was something I heard mentioned on the BBC earlier this morning as possibly one of the reasons why the company that went bust was offering Turkish holidays at the cheaper end of the market. It seemed fair enough to me.
    You seem to have jumped to an erroneous conclusion that I was suggesting the EU was the ONLY desirable holiday destination. May I suggest you read my comment again?. As to my deviousness, I tried to put the point politely, so let me say it more brutally - that if you can't afford a financially secure holiday abroad, then stay at home.
    Finally, why do you think I'm female? If you'd a wide enough knowledge of Victorian English literature you'd have known better. Be careful whom you call unintelligent and ignorant. And if you're American, please don't use the word 'Brit' unless you know whom you're talking to. Most intelligent Britons think it crude. I wouldn't dream of referring to Americans as 'Yanks', nor to my French friends as 'Frogs' either.

  • Comment number 33.

    The main point has already been made by several corespondants, and that is, is that you do not get anything for nothing. Reading holiday makers reports does paint a picture of cheap and low standard hotels. I feel very sorry for those people who so desperately want a holiday, and that these prices are all they can afford. That said, whatever they pay is a waste of money, money that they can ill afford to lose.

  • Comment number 34.

    It's interesting to read all the comments so far, but not a single one of your correspondents has mentioned the magic word - INSURANCE.
    There are enough insurance policies that cover such an event, and then the travellers wouldn't have all the worry about what happens when the company goes bankrupt.
    It would add a few quid to the cost of the holiday, so it's not worth it they'll say. So, for the value of a few bottles of beer they'd prefer to live in uncertainty.
    By the way, why can't the government force the travel companies to put the monies paid by people into an escrow account with money being withdrawn from there only to pay the suppliers. So if they go bust, the money is still there or already with the supplier.

    ----------
    Insurance may or may not provide compensation after the event, it will not :
    A) Pay a hotel bill demanded in resort
    2)Provide a Plane to take you home
    3) Explain to children at the Airport why they can't go on holiday.

    I expect most if not all of the customers will have insurance as it is normally a requirement of package companies that you take that provided or arrange alternative cover before you travel.

  • Comment number 35.

    I think the regulators ought to make checks on tour operators more often as they have clearly been in trouble for a while and knew this was going to happen. They collect money from people booking their holidays in advance then can't pay their suppliers when the holidays are being taken around this time of year. We have to accept that companies will always face difficulties that can't be avoided however the scale of the problem could have been smaller if the management hadn't kept quiet about the financial problems. Companies don't go bust just like that, someone knew this coming for a long time and did nothing about it.

    -----------
    Do you honestly think under the Condemned Government Regulation and the independent staff to conduct it properly will increase in any sector?

    They will simply point to self regulation as an alternative in the same way that they are privatising the NHS by passing it's money to Self employed GP's

  • Comment number 36.

    If you buy cheap goods from £1 shops,then dont expect such high reliability, whether deodrants or kids toys. With deodrants you may get as much as 50% use from it before it fails, with toys, they may last as much as 5 minutes of use.
    Cheap products services are generally cheaper for a reason, reliability is not one of their strong points.

    _________________________________________________________________

    The old addage a fool and his money are soon parted, as for £1 shops, surprisingly enough often you find real bargains i found a laptop cooler for £1 which works in large chain stores you'd be looking at paying £5-£10 for the exact same thing, HTC cruise mobile ive had for 3yrs now does everything the iphone 4 does including lots of FREE apps available on the net. Problem is people believe the hype and get taken in by a promise of the best for the best price. When the truth is as my family and i have always found that avoiding travel companies all together and arranging all facets of the holiday via the internet direct with a hotel and direct with the airline always works out cheaper. Price comparrison sites are just as much a ripp off too you will probably notice that out of the 20 or so results for each quote you get 15 are from the same underwriter but using a different brand name.
    people should do their homework and if your worried about a resort just use a google search to see if you can find any bad reports online of that resort it is very simple to do.

  • Comment number 37.

    I cannot belive this merits so many headlines, 11 travel companies have gone bust this year - wow what a big deal!

    How many construction companies have gone bust and the BBC isnt interested, or are they just waiting for one of the big boys to go pop like the rest of us when the government has just axed the only programme that was keeping the industry going.

  • Comment number 38.

    These passengers are not actually stranded, its just a bit of media exageration.
    These flights all operate in Europe, so they are governed/regulated and protected.

    What happens, or what should happen is that the company goes bust, the charterd planes are STILL sitting on the airports waiting to take passengers home or are BOOKED to do so.

    All that happens or should happen is that the Airlines consumer insurance scheme then pays the same chartered flights where necessary, to do the same job, which means NO extra costs because the planes are already pre-booked to do the same job, ALREADY at a VERY LOW PRICE.

    The only real problems arise is if holidayers have NOT taken out insurances to cover other issues.


    One thought.

    Maybe such or ALL businesses should be made to use computer software which upon a situation arises as not enough money to pay/maintain the running costs of the business, the software prevents ANY and ALL further acceptance of bookings/sales and instantly sends information etc to regulators etc.

    It is NOT acceptable that someone can book a holiday and pay for it, then 10 minutes later the business closes and they lose their money.

    A business DOES NOT just go bust.

    There is CONSIDERABLE information and PRE-WARNING of financial issues/FAILURES LONG BEFORE the close of business. In such situations it should be MANDITATORY to inform ALL who are at risk.

    ANY business which takes money up front from consumers before any product/service is provided, should be in the financial position to supply that product/service. If they are not, then basically it is FRAUD/DECEPTION/THEFT.

    This is 2010, a basic software programm is all it needs to MASSIVELY protect consumers and also protect insurers and other businesses who contribute to mandatory insurance schemes.

    To drive a car, you have to pass a test and meet certain requirements in that test.

    Yet you can start a business and rake in £millions with NO test of compliance.

    The movement of so many people is a very SERIOUS event. Its not the same as thouands upon thousands of cafes/restaurants having inspections, in comparison there are MUCH fewer airlines and tourist operators.

    This event is also resultingly as a DIRECT consequence of ATTROCIOUS REGULATION.

    If banks can be regulated and inspected, and required to meet certain conditions/criterea of operational standards, then WHY NOT AIRLINES and HOLIDAY businesses, especially those of a particular size.

    Its NOT as if businesses do not have INSTANT access and knowledge to their financial status.

  • Comment number 39.

    In reply to Deanarabin.........

    .............I assume that you are referring to Anthony Trollope's character and thank you for your concern.

    No accusation of deviousness was made. As to your gender I had surmised it from some previous postings. If I erred please accept my apology.

    I have re-read your comments and whilst I admit that I may have been led to arrive at conclusions that apparently were not inferred by you I would also suggest that you re-write your comment as little you have since explained would deflect me from making the same suppositions.

  • Comment number 40.

    I'm not worried. Since Labour stole all my money to give to the lazy and corrupt , I haven't been able to afford a holiday. The lazy and corrupt seem to be able to afford one though.

  • Comment number 41.

    12. At 1:15pm on 18 Jul 2010, Icebloo wrote:

    More unemployed Mr Cameron - so far I've seen you do NOTHING to create new jobs anywhere except Afghanistan where you plan to increase financial aid from UK taxpayers by 40%. What an incompetent government we have.


    Yet unemployment figures went down last month.

  • Comment number 42.

    Like many ordinary people I booked flights in Jan 2010 and was due to fly in July. The company was licensed, a legel entitity and trading.

    Some of the comments posted are without research the flights are quite similar in price what often swings in is the flying dates/times and the extras charges.

    Goldtrail have had my money and should have passed it on to Onur air not kept it. It should be placed in escrow accounts-interest can be collected but the airlines paid in full in advance. I try to get a reasonable deal and I should be protected, there is an obvious need to protect consumers. Legislation should be used to ensure 3rd parties are paid, Goldtrail was a booking agent not an airline. No one will pay double for a flight with a major carrier when they can get a cheap flight. Even big companies go bust (Banks).

    I would like to think that a criminal investgation takes place as since my flight was a week away, why hav'nt the airline been paid in full, goldtrail fees were the profit revenue margin, not my flight payment.

    The airline I have booked with is still flying !.

    Many families are feeling the squeeze and cant afford peak season flights either.

  • Comment number 43.

    · 40. At 4:24pm on 18 Jul 2010, Alison wrote:
    I'm not worried. Since Labour stole all my money to give to the lazy and corrupt , I haven't been able to afford a holiday. The lazy and corrupt seem to be able to afford one though

    ##########################

    You mean

    Politicians

    Bankers

    Chief executives

    Councillors

    Shareholders

    People like that?


  • Comment number 44.

    Anyone who goes on holiday abroad has the option to take out travel insurance which covers having to come back home in an emergency or when an airline or travel company goes bust. If people choose to take this risk and not insure themselves against being left stranded abroad then that is their own look out.

  • Comment number 45.

    · 41. At 4:41pm on 18 Jul 2010, Magi Tatcher wrote:
    12. At 1:15pm on 18 Jul 2010, Icebloo wrote:

    More unemployed Mr Cameron - so far I've seen you do NOTHING to create new jobs anywhere except Afghanistan where you plan to increase financial aid from UK taxpayers by 40%. What an incompetent government we have.

    Yet unemployment figures went down last month.


    ##################################


    Unemployment figures are down this does not mean more people are working or less people do not have a job

    Just as

    Recorded crime figures are down does not mean that there is less crime or that we are catching more criminals

  • Comment number 46.

    1. At 11:09am on 18 Jul 2010, David Hazel wrote:

    If price really is an issue, then there is always the option of going somewhere in Britain.

    ++++

    Er... Have you checked the costs of travelling and of hotel accommodation in this country?

  • Comment number 47.

    · 46. At 5:32pm on 18 Jul 2010, Ralph124C41plus wrote:
    1. At 11:09am on 18 Jul 2010, David Hazel wrote:

    If price really is an issue, then there is always the option of going somewhere in Britain.

    ++++

    Er... Have you checked the costs of travelling and of hotel accommodation in this country?


    ###############################

    By comparison it is very expensive to stay in the UK, the reasons are

    1: Property Prices have a look at the cost of purchasing a hotel in the UK then compare it to Spain.

    2: Wage costs, staff deserve a decent wage

    3: The cost of everything from fuel to business rates, my business rates have increased by 500% this year

    The interest rate on my overdraft facility has increased by 240%

    The cost of heating oil has gone through the roof again



    I know whose fault it is though.







  • Comment number 48.

    Not that Goldtrails demise will have much impact on the unemployment figures but it does introduce an interesting tangent.

    As 'Its all Thatchers Fault' pointed out the fact that unemployment figures have 'fallen' does not mean that there are less people without work. The crime figures are the proof. They have also fallen and we all know that there is a lot less crime around nowadays.

  • Comment number 49.

    The travel industry is in a mess, and hasn't been helped by the Government that continually increases the tax on flying, with the next increase due in November, and further increases in the pipeline. These increases together with the general economic situation means that a lot less people are holidaying abroad, and those that do are having to economise whereever possible, and take a chance with the lower cost providers, it therefore was almost inevitable that another company would go bust. They will not be the last.

  • Comment number 50.

    With Unite and the other Unions also trying to stir up trouble and further disrupt air travel, businesses are being driven into the ground as people prefer to stay at home rather than risk all these issues. We can say bye to more jobs from Aviation and airlines over the next year.

  • Comment number 51.

    45. At 5:13pm on 18 Jul 2010, Its all Thatchers Fault wrote:

    Unemployment figures are down this does not mean more people are working or less people do not have a job.


    Yes it does.

  • Comment number 52.

    · 51. At 6:50pm on 18 Jul 2010, Magi Tatcher wrote:
    45. At 5:13pm on 18 Jul 2010, Its all Thatchers Fault wrote:

    Unemployment figures are down this does not mean more people are working or less people do not have a job.

    Yes it does.


    #######################

    If you believe anything any politician tells you then you are naive


  • Comment number 53.

    It's about time people had their money protected by default when buying anything, instead of a company being able to go under, taking their customers cash with them.
    A extra step has to be introduced, that ring fences customers cash that does not belong to the company going under, as the only people to benefit are the companies that come in to trawl through the wreckage, as they are the ones who make a fortune for their services, at everyone elses expense.
    something must be done to stop these vulture like businesses helping themselves to innocent end customers cash, that was spent, and no service was supplied. the money should remain property of the customer until goods have been recieved, as for those on holiday when companies fold, their hotels and return flights, should already be paid for in advance and supplied without incident, as they have been paid for. its time the process changed to ensure companies do not misuse customer funds for their own ends without supplying what was paid for first.

  • Comment number 54.

    What annoys me is that this travel compnay must have known it was going under, yet it was still flying people out on holiday right up into the very minute the administrators were called in.

    They knew they'd strand people and just didn't care.

    I'm no angel or almighty moralist, but that's just wrong. What kind of people do that?

  • Comment number 55.

    its blatently obvious that the UK govt, does not want people travelling and spending their money abroad. just look at the dramatics you need to go through just to get on a plane. arrive and check in 2 to 3 hours before your flight, I think tthis is done on purpose so that other means of travel can compete against some flights.
    The whole process of flying somewhere is made as awkward as possible on purpose, to totally put you off from flying, security issues are overplayed on purpose to justify their actions, as we already have good airport security, I personally thing we are all being taken for fools at airports.

  • Comment number 56.

    Re - post #22

    What is a 'mosk' and do they come in any other colour than blue?

    Knownought

    Its like a hairy cow isnt it??

  • Comment number 57.

    The travel industry has always been dodgy when times are hard. Expect more companies to hit the buffers in the near future. The best thing to do at present is take a holiday in Britain, you may be pleasantly surprised.

  • Comment number 58.

    i feel that i have to respond to some of the comments on here about the collapse of goldtrail firstly why do some people take great pleasure in other people's downfall my husband and i booked and paid for a holiday through hays travel and we paid £800 to go for 1 week to turkey in october we were booked with goldtrail so we are gutted to be informed they have gone into administration we are a hard working couple who didnt think it was that cheap we have insurance and we know that we are going to get our money back not in the near future going by what the news has said all we wanted was a week away little bit of sunshine away from the everyday stress of work etc we arnt lager louts as suggested by some comments,or stupid people. we put our faith in the travel agents as they are the specialist's we paid our money and were looking forward to the break which now will not happen.i dont want people to feel sorry for us this is our problem what i cannot stand is the fact that some people are not happy unless they are gloating at the expense of other people.i dont really care what other people think but i resent the fact that we are put in a catagory as been stipid etc when all we did was save our hard earned money and took the advice of the travel agents.

  • Comment number 59.

    Cheap holidays? You get what you pay for (like most things in life). If it's cheap you take a risk. That's the choice you make!

  • Comment number 60.

    Davesaid wrote:

    The travel industry has always been dodgy when times are hard. Expect more companies to hit the buffers in the near future. The best thing to do at present is take a holiday in Britain, you may be pleasantly surprised.


    Yes, but don't come to Skegness. I live there and it's rubbish. Full of greasy fish and chip shops, tatty amusements and it's always cold and windy!

  • Comment number 61.

    Would be nice to know the exact definition of
    The Travel Industry.
    Are we talking about Hotels?
    Or Tour Operators acting as agents for Hotels and/or Airlines?
    A Tour Operator makes money on a commission only basis.
    Hotels and Airlines all too willing to pay that commission.
    The Tour Operator gets the money up front.
    Hotels,Airlines and the customers all depend on that money being transferred.
    Have no knowledge of the commission Tour Operators charge for booking a holiday.
    Suspect this is somewhere in the range of 10 to 15 percent of the overall cost.
    Nice money to be made.
    If you do not care what you are selling.
    And you do not care who you are selling it to.
    Meanwhile.Our Hoteliers and our Airlines seem to have no problem in giving Travel Agents a good discount.But are somewhat reluctant to pass the same reduction to anyone making a direct booking with no Agent involved.
    Have you ever entered a Hotel Website and recieved a better quote than your Travel Agent?
    Am certain there must be some hotels who do this.
    Would be fantastic if our National Press could name them and congratulate them.
    But think again,These same hotels risk offending their Agents.May never get another booking.
    Where now for our Travel Industry?
    Should be obvious.Unaffordable Hotels. Unaffordable Holidays.
    An expensive product that few people can afford has no long term future.

  • Comment number 62.

    Why are so many blaming consumers? Strikes me the the travel industry needs to get it's act together - perhaps they need proper regulation - like the naughty bank piggies.

    Oh, and as for this idea that you get what you pay for.......tell that to the Fairpak Hampers Xmas club savers or people like me who brought endowment policies after receiving "independant" "expert" advice.More day light robbery by the Financial Services Sector.....I received some compensation via the Ombudsman but still significantly out of pocket.

  • Comment number 63.

    to RTFishall post 61. I will take your advice & avoid Skegness.

  • Comment number 64.

    It puts another question mark on the viability on this cheap all-inclusive mass-tourism. But I think there is also a direct link to the continued, totally irresponsible zero interest policy in the UK. This has (quite deliberately) destroyed the value of the pound, primarily for the sake of London's fat bonus-bankers who rely on upkeep of the housing bubble. As a result not only suffer the prudent savers but also the British Airlines and tourism companies. They go bust because people can't afford foreign holidays anymore.

  • Comment number 65.

    Holiday in England? Have you seen the cost? I've just checked on the web and a 2 week holiday, 5* for 2 adults in the Caribbean with a very reputable company (one of the largest) in November (nice weather) £2,218 for 2 persons. Includes flights, accommodation, transfers and all inclusive 24 hours food and drink.

    Now - you can't compare eggs with eggs as you wouldn't go on holiday in the UK in November so for weather's sake we'll use August. You can't get all-inclusive in the UK so I've searched using 4* (comparable to Caribbean 5*) B&B. £1,440. Now add £20 per person per day food and drink £560 = £2,000. Travel (from London by car - assuming it's fuel efficient) £100.00 = £2,100. The room picked was a 'deluxe double' so I'm sure it would be very nice.

    For just over £100 more, however, you can get to the Caribbean so why on earth would you risk having rubbish weather, a typically 'English' service, no beach, having to pay for food and drink at English prices (£3 for a single shot or a pint and £10 for a cheap meal).

    I'm more surprised that UK hotels aren't going bump rather than holiday companies heading for the sun. Holidaying in the UK (unless you're prepared to sit in a caravan or tent or share a cottage with 6 other people) are definitely NOT cheap.

    It's not all doom and gloom. Not all companies will go bump. When I book a holiday I use reputable company (ABTA/ATOL registered) and pay with a credit card (and pay it off with the saved money so I don't get charged) and I have an annual travel insurance so I'm covered in virtually all circumstances.

  • Comment number 66.

    I fail to see how a holiday firm can continue to take bookings when they MUST know that they're failing! Surely that is fraud???

  • Comment number 67.

    " 56. At 8:13pm on 18 Jul 2010, rigpig wrote:

    Re - post #22

    What is a 'mosk' and do they come in any other colour than blue?

    Knownought

    Its like a hairy cow isnt it?? "

    I am sure that is a moosk. It is brown and hides behind trees.

  • Comment number 68.

    13. At 1:18pm on 18 Jul 2010, JULES wrote:
    Yet again another travel firm has collapsed. The Government should be rushing through laws to protect customers who pay for goods with maestro / switch rather than rushing through laws for reducing pensions to buttons!!disgusted....
    ========================
    Why? Should your bank pay if you pay by cheque? Or the BofE if you pay with cash? Debit cards are plastic cash, that's all. Why not book with a credit card where you get protection? Then use you debit card to pay the credit card bill.

  • Comment number 69.

    19. At 1:43pm on 18 Jul 2010, banda78720 wrote:
    deanarabin writes........"if people are so poor that they need to go to Turkey because the eurozone's too expensive, then wouldn't it have been better to have taken a holiday in the UK?"

    This just shows the unintelligent ignorance of so many Brits. Turkey is a wonderful place full of culture, friendly people, great beaches weather and food. It is an ideal place for a holiday and still represents value. It also remains extremely popular.

    To propose that the EU is the only desirable holiday destination (yes, let's forget the rest of the world ) and that even staying in the UK is better than going to Turkey (for reasons which I suspect she harbors but will not voice) is illogical and offensive.

    =========================
    Recommended

  • Comment number 70.

    So, they went bust on a Friday? This is a typically British company trick; rake in every last penny before going bust on a Friday. It means we get 2 days before any semblance of order and understanding can take place. Ripoff Britain continues to set new depths of tolerance by the establishment, and British citizens continue to be preyed upon by these wealthy cynics.

  • Comment number 71.

    Personally, i hope that yet another holiday firm crash will lead to more people taking more of their holidays here in the UK, not just as a boost to our own economy, but to encourage more diverse types of breaks, both family and individual, and get people thinking about the resources we have already,.

    This latest crash will also encourage more people to organise their own holidays, from start to finish, rather than relying on companies to cater to their needs wholesale. Given that this company wasn't the first to leave the impression everything was OK up to the very last minute, still taking people's money and turning their holidays into nightmares, it's about time the holiday industry was given a wake up call, the biggest one hitting them in the cash balance.

    The more people vote with their feet and their hard earned cash, and use alternative avenues to organising their breaks, the more of the badly funded, badly run companies will curl up and die, without leaving thousands of people in the lurch.

  • Comment number 72.

    Two rather obvious tips before travelling:
    1) Arrange adequate travel insurance;
    2) Arrange access to substantial emergency funds, just in case someone or something goes bust, or you miss a flight, etc.

    If you can't do these, think carefully about going anywhere!

  • Comment number 73.

    The same old boom bust. Capitalists maximise profits, when that is no longer happening they move on, if you happen to be a stranded passenger so what, they don’t care, they have made their dosh!

  • Comment number 74.

    Shudof gone to radio rentals!!!!!!

  • Comment number 75.

    The Ace Face wrote: Here's a novel idea, perhaps the governement doesn't want people to travel?

    Eh?

  • Comment number 76.

    41. At 4:41pm on 18 Jul 2010, Magi Tatcher wrote:

    12. At 1:15pm on 18 Jul 2010, Icebloo wrote:

    More unemployed Mr Cameron - so far I've seen you do NOTHING to create new jobs anywhere except Afghanistan where you plan to increase financial aid from UK taxpayers by 40%. What an incompetent government we have.

    Yet unemployment figures went down last month.

    Shame that most of them were part-time jobs. Part of our new 'flexible' economy where you have to be grateful for any employment.
    By the time the government has fished topping up the low wages with family tax credits and child care it is hard to see how these 'new' (down-sized) jobs will help pay off the national debt

  • Comment number 77.

    Cheating has become the only growth industry in this world, the West is seriously guilty of letting cheats run businesses within its borders in the name of free enterprises. The agencies that are supposed to protect the consumers are in bed with the cheaters, a bunch of over paid politicians who have the right words but not the right solutions. Citizens are getting tired with high fees, sloppy service and dysfunctional companies. It is the first duty of all governments to make sure that its citizen's and guests do not get cheated. Are you doing your job????

  • Comment number 78.

    If everyone who travels abroad for pleasure donated the normal cost of their trip(s) for a year to the exchequer, how far would this go to paying off our debts and enanbling us to keep vital services?

  • Comment number 79.

    The CAA is a tool of the airlines and not a proper regulatory body. The CAA gives in constantly to airline lobbing , take the policy on Seat Design and Spacing which has been pruned down and passed on to other organisations (I cannot understand why a four and half hour journey to the Canaries has the minimum seat spacing)
    Take this case, companies don’t go bust overnight what was the CAA doing ?
    Scrap the CAA

  • Comment number 80.

    I must take issue with Sue Doughcup's cooment that 'tourists are not really intelligent"

    I'm assuming she is referring to the "binge drinking" type of tourists who so often shame this country while abroad. But other people do travel abroad not only for sunshine but to see and experience first hand wonders such as the pyramids, ancient Roman ruins etc. However I do agree that environmentally the less air travel at the moment the better. I couldn't help musing that when the Icelandic volcano blew a few months ago that it was Mother Nature fighting back. Look at the carbon emissions saved by all the grounded flights !

    Whilst our own tourist industry is suffering, we should all do our bit to support it and holiday at home. It can bemore expensive, but if we can't. afford a whole 2 weeks in a British hotel then there always away days to be had.

  • Comment number 81.

    "This seems like the end of cheap air travel ? and The private deals' done by the small travel companys with hotels and villas', The Ex Pats, who live abroad in the sun, will suffer , No more cheap air fares and property prices will fall in many popular holiday places'.

  • Comment number 82.

    I agree with the points made at *58. Many of the customers of Goldtrail will have booked all-inclusive deals so that they can budget for their holiday, and chose Goldtrail because of the cheap deals (there's nought wrong with that - how many of us use the budget airlines?). And for all those people who are saying insurance is the way out, this wont help you when your hotelier is demanding money with menaces! I guess I'm a bit of a pessimist, I will never travel abroad without an emergency fund available. Customers should get their money back eventually, and all those stranded will get home in the end. Given the current economic woes, not even the largest of the tour operators will not be immune from financial difficulties, so my advice is - book your holiday, take out adequate insurance and budget for emergencies!

  • Comment number 83.

    It's common sense. If you buy a cheap plastic car from a 99p shop you don't really expect it to last very long do you. The point is that what is cheap is cheerful and don't expect it to be here in a very long time.

    I never could understand the cheap travel industry and how it can operate on such small fares. I am shocked really that people are suprised about this because the profit margins must be so small that the company must have been on a knife edge for a while.

    Personally, I think that company law needs to change. Companies must have a percentage of total company revenue standing by to be able to honour commitments. It's no good for companies to be constantly in the red or have no cashflow because it will always end in tears.

    I am not saying that low cost airlines should go away though. I was put off flying long ago by delays, terrorism, baggage limits etc and I always holiday in the UK now as there is more than enough to do and see. I am glad that these sun worshipers and the 'I must go abroad' people leave this great island for others to enjoy.

  • Comment number 84.

    12. Icebloo wrote:
    I'd like to know where these mythical cheap flights and cheap package holidays can be found. I've been looking for them for over 20 years and I constantly hear about them on TV but I have never yet found one. It's just hype to fool us into wanting to buy a holiday.
    ----------------------------------------------------------------------
    It's been obvious for years that all the 'cheap' holidays displayed in travel agents windows have 'just gone' when you go in to make enquiries.

    I for one am not fooled, but my wife is taken in everytime.
    ----------------------------------------------------------------------
    13. JULES wrote:
    Speaking as a customer who has lost £800 from the collapse of Globespan 10 days before Christmas am I surprised - heck no. Why? nearly 7 months on and where am I? I still haven't received a button of my money, even though I wasn't due to fly with Globespan until August 2010!!

    Apparently I will be lucky to recoup £40 of my £800 which "Globespan" or its administrators now have. And for those who post comments about travel insurance, my annual travel insurance apparently didn't have a specific clause to cover airline failure.....
    ----------------------------------------------------------------------
    I to got caught out by a travel company going under in the 1990's. Fortunately I paid half the cost of the holiday on my credit card and was able to reclaim that amount in full. The advice I would give anyone booking a holiday is to pay by credit card, as the insurance you pay to the credit card company covers you if the travel company goes under.

    You will still loose your holiday but with a repayment you will be able to book another.

  • Comment number 85.

    7. At 12:13pm on 18 Jul 2010, Sue Doughcoup wrote:
    But then tourists don't have that much intelligence really, do they?

    -------------

    Umm... What?

    'Your taxes' spent on 'these poeple'? What, British citizens who have ALSO paid taxes? And - tourists are unintelligent? Prove it. Tourism (in- and outgoing) is also a massive economic benefit, by the way - since you're so concerned about money.

    Maybe, and I'm guessing here, some of those people have saved and saved, stayed out of debt and paid their taxes (just so you don't get nervous) and had a holiday - maybe their first in a good few years - and can only be blamed for trying to stretch their budget as far as they could.

    Still - what with all the rational comments I've seen recently I was worrying where all the sanctimony had gone.

    Folks - by the way, most Insurers DO NOT cover this kind of thing. You are normally in the care of the consulate or the administrators. Some policies do, but be sure to check.

  • Comment number 86.

    If you want to take a holiday on the cheap, then don't bleat and moan when things go wrong.
    Taking into consideration the negative coverage that Godtrail received on the BBC's Watchdog programme earlier this year, I'm surprised anyone was gullible enough to book with them.
    During my 28 years in the Armed Forces, I travelled to some far-flung and bizarre places, using some weird and wonderful modes of travel and some strange companies. I was always prepared for the worst; which never happened.
    Now that I am older and less willing to use my initiative, I use a reputable holiday company. I pay slightly more, but the support and organisation throughout the company is flawless. You pay for what you get.

  • Comment number 87.

    With one exception, I have always travelled abroad independantly, because it is better value for money and you get exactly what you want. On that one other time with a tour operator, the reps were useless, the experience was not special and at the end of the holiday the group had to endure delayed flights and being dumped at the airport.

  • Comment number 88.

    Booking with the big wigs is the only way to ensure you will get your holiday now.

    I'm a frequent flyer with Emirates and always book direct with them.

    For my holidays it usuallys Thomas Cook or Thomson.

    Cheapness is all very well but there is no security with your bookings or your money.

    People need to be smarter when booking and not go for the cheapest option.

  • Comment number 89.

    Another option is to put your own package together using low cost airlines and hotel discounts.
    -------------------------------------------------------------------------

    If you put together your own package you don't get so much protection. There is far more legislation surrounding package holidays.

    Also putting together yourself can work out more expensive.

    I've looked into all options for my holiday this year and a package holiday through Thomas Cook it is.

  • Comment number 90.

    Things were a lot more predictable when the working classes spent Wakes Week in a boarding house, in Blackpool.
    Had the Good Lord intended them to be sun-tanned, he would have made them Johnny Foreigner.

  • Comment number 91.

    I feel sorry for the people stuck in Turkey. One chap I heard on the radio this morning was claiming that their hotel staff were constantly saying 'go home english'

    I Love holidaying in Turkey but the Turks have a particular deep seated hatred for the English. I remember being there once with a girlfriend where we were both punched and beaten by the Police for no other reason than being English, there were around 10 or so I guess standing forming a passageway, Police either side.

    Came home to find out that my nose and check bone had been broke.

    Still go again though.

  • Comment number 92.

    Companies go bust all the time and customers who pay in advance lose. Does not matter whether we are talking about travel, furniture, Xmas hampers.

    Anything over £100 pay by credit card. That way the credit card company has to re-imburse you.

    Secondly the travel industry is much better regulated than most other types of industry. All travel companies have to post a bond which if they go bust the industry uses to make sure that stranded people get back home.

    The fact is that most things we buy now do not need to be paid for weeks or months in advance. But where advance payments are needed insolvency of the supplier is always a risk. UK insolvency law is not perfect but it is pretty good. Harsh as this may seem, insolvency law has to strike a balance between protecting the public and at the same time not penalising directors of failed companies so much that no one would want to start a company

  • Comment number 93.

    Solution is simple. Stay in the UK and help our economy.

  • Comment number 94.

    I feel desperately sorry for people who have now lost a holiday they were looking forward to and for the appalling way stranded Goldtrail holidaymakers are being treated in Turkey. They paid up front in good faith.

    This is proof again that you purchase an online deal at your peril so future travellers take note! The moral of the story is go to a 'big name' travel agent and book with a 'big name' tour operator.

    It's also time that the idea of paying for a holiday in full in advance is reviewed. You shouldn't have to pay for a holiday until you've taken it!

  • Comment number 95.

    Wow, some people on HYS are feeling a bit self righteous this morning aren't they? "you get what you pay for" & "buy cheap get cheap" seem to be common statements, now, when it comes to the quality of your flight/ accomodation etc this is true, noone has the right to pay campsite prices and expect the Ritz, BUT, when booking a holiday, even if it is with "dave's dodgy days out" your statutory rights mean that the company you booked through have a responsibility to at least get you there and get you back. Some of the comments make it sound as if people are revelling in someone elses misfortune. Personally I use a large travel firm because I like the service and the protection I get but I'm not going to castigate someone else for trying to get a good deal,their thriftyness doesn't mean they deserve to get stranded abroad.

    (BTW isn't a "mosk" one of those guys in the brown robes with the vows of celibacy?) :)

  • Comment number 96.

    surely as ATOL in effect insure customers against their holiday company failing, they should look closely at audited account at the start of every season. This company have not just become short of cash and a bad season on numbers had been expected. ATOL, because of their potential liabilities should police this industry or at least the companies that are ATOL bonded.

  • Comment number 97.

    Why is it year after year, low cost holiday companies go bust and leave people stranded abroad. Is there no legal requirement to get these people home, what about the travel insurance, and holiday companies should have their own insurance for this. The aircraft are still available surely it is cheaper to pay the crew to do their job for another two weeks to get the people home? Those that have not started their holiday will have to find an alternative but at least they are on home ground.

  • Comment number 98.

    #91...Feel_Bad_Factor wrote that the Turks have a deep seated hatred of the English and that he and his girlfriend were once badly beaten up by Turkish police for no reason. Yet he would still go again.

    There is something really worrying here. The racism. I have had two houses in Turkey since 1990. I have never found the Turks to be anything but very friendly, polite and hospitable. I have never, ever been threatened by the police and have traveled fairly widely in the south and south-west of the country. I have made the effort to learn some Turkish and am always polite myself. In short I have rarely met a friendlier people.

    I suspect the Turkish opinion of the English may have soured since 1990 as hoards of package tour people have descended on them. I haven't been for about five years but hope that I do not notice hostility when I return as it was such a lovely place.

    Unfortunately the English tourists have damaged our reputation so much in many countries. I often find that you are greeted with a certain misgiving until you are able to prove that you are actually polite and courteous, have a brain and are not like most of the rest. The number of times I have cringed and been ashamed to be English in my travels worldwide are off the scale.

  • Comment number 99.

    and there, we have had much to say about British Airways and the charges for their flights. When this happens, another company bites the dust then one does realize why good company's cost money, why service comes at a price. Nasty to have a travel company go broke, now everone else picks up the tab yet again, not knocking the holiday maker, was good while it lasted - read that - while it lasted .......Virgin air is no longer cheap, why, service and regular flights too, all, at a price.

  • Comment number 100.

    This comment was removed because the moderators found it broke the house rules. Explain.

 

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