Holidaymakers Face Double Payments After Collapse of German Travel Firm

FTI Touristik, a major German travel company, has collapsed, causing disruption for travelers across Europe. The firm, the third-largest tour operator in Europe, announced that all travel arrangements with departure dates up to and including July 5, 2024, are canceled.

This collapse directly impacts a small number of UK holidaymakers who booked packages with FTI, but they are covered by the German Travel Security Fund. The broader issue arises from FTI’s subsidiaries, Youtravel.com and Meeting Point International, which serve as intermediaries for online travel agents (OTAs).

British travelers, often unaware that part of their holiday was booked through these subsidiaries, now face unexpected payment demands. Unlike traditional tour operators who have direct relationships with hotels and service providers, OTAs frequently use intermediaries like Youtravel.com. This method allows for favorable rates but has introduced risks, as some Mediterranean hotels are now demanding upfront payments from guests, fearing they won't be compensated by FTI-owned intermediaries.

Youtravel.com, although not insolvent, is working to secure its future independently of FTI. The company is aware of the situation where guests are being asked to pay locally and is providing support to resolve these issues.

For those who booked package holidays with flights and accommodation together, the responsibility lies with the tour operator. Companies like Love Holidays are striving to honor bookings through alternative suppliers to minimize disruptions. Travelers are advised to check their hotel vouchers for bookings involving Youtravel.com and are reassured that efforts are being made to rebook accommodations.

Transfers and excursions organized through FTI’s Meeting Point brand are also affected. Holiday companies are working urgently to arrange alternatives if these services are impacted.

UK travel industry leaders express concern about the broader impact of FTI’s collapse. Julia Lo Bue-Said of the Advantage Travel Partnership highlighted the significant repercussions for the German travel market and the European supply chain. She emphasized the challenge of finding alternative holidays at similar prices for affected travelers.

Despite FTI’s financial struggles, which existed before the Covid pandemic, the collapse may ultimately benefit other companies in the travel industry.