News People planning holidays ‘should not worry’ about more firms collapsing

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People planning holidays ‘should not worry’ about more firms collapsing

Holidaymakers thinking of booking flights abroad should not be concerned about further collapses in the holiday marke

Holidaymakers thinking of booking flights abroad should not be concerned about further collapses in the holiday market, ABTA – The Travel Association has assured customers.

Frances Tuke, an ABTA spokesperson, said the collapse of travel firms is unavoidable, especially during the ongoing economic difficulties.

"We get failures no matter what the economic climate, and in a recession every company is that little more vulnerable," she explained.

"We wouldn’t rule out the fact that there are going to be failures this year and over the last couple of years we’ve actually seen a steadying off of failures."

Ms Tuke added that big failures, such as XL going into administration last year, happen "about once every ten years".

Freedom Direct became the latest holiday company to collapse as a result of the recession.

The folding of the firm, which traded under names including freedomdirect.co.uk and holidaysyoulike.co.uk, is thought to have affected almost 9,000 holiday bookings.

XL Holidays announced that it had entered administration in September after it was unable to obtain further funding as a result of "volatile fuel prices and the economic downturn".

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