Lowcostholidays Collapse Sparks Travel Chaos for 140,000 Brits
Almost 140,000 holidaymakers face nightmare travel chaos after online travel giant Lowcostholidays collapsed just as summer kicks off. The disaster hits 27,000 Brits already abroad and a whopping 110,000 more who booked but haven’t flown off yet, according to administrators Smith & Williamson.
Flight Bookings Mostly Safe, But Hotel Stays at Risk
If you’re already on holiday, don’t panic – your flight tickets remain valid, says the administrator. But hotel bookings could cause serious headaches. Many customers might have to pay hotels, transfers, or parking fees again on the spot, even if they thought it was all sorted. Always keep receipts!
The company blamed a “recent and ongoing turbulent financial environment” for the collapse, despite desperate last-minute rescue attempts.
Who’s Affected?
- Lowcostholidays customers
- Bookings with Lowcosttravelgroup Ltd
- Hotelings.com and Lowcostbeds.com brand users
The company moved its base to Spain in 2013, leaving UK protections void.
Booked But Not Travelled? What You Need to Know
Flight bookings should still stand, as airlines hold reservations once paid. But if you don’t have flight confirmation yet, contact the airline immediately.
Hotel bookings made through Lowcostholidays will be cancelled with no refund. If you booked a flight-and-hotel combo, you might be able to claim through the Spanish regulator, Govern de les Illes Balears (www.caib.es).
No ATOL or ABTA Protection—What Now?
Lowcostholidays doesn’t have an ATOL licence because it shifted operations abroad. That means customers won’t get the usual UK protections if the company busts.
It’s also not an ABTA member, so no support there either.
How to Get Your Money Back
- Credit Card Users: If your booking cost £100 or more per person, Section 75 of the Consumer Credit Act may cover you. Even putting down a tiny part on your card counts. Your credit card company could be on the hook for a refund.
- Debit Card Users: You can try a chargeback to reclaim funds, but it’s a customer service gesture, not a legal right.
Tip: Keep thorough records of all payments and receipts to speed claims.
Travel Insurance—Are You Covered?
Check your policy carefully. Most standard plans exclude travel firm collapses unless you bought specific failure cover. If you have it, gather all paperwork for your claim.
Customer Fury and What Officials Say
Travel chaos has sparked outrage on social media:
“Malia cancelled without money back because @lowcostholsie have gone bust, absolutely fuming” – @lewcommins
“I’m going away next Friday with #lowcostholidays anyone know what’s gonna happen? #bust” – @AhhDeeNo
Smith & Williamson reassures customers currently abroad that flights are booked and will get them home. But those yet to travel could face unpaid flights and hotel trouble.
The bottom line: Holidaymakers hit by Lowcostholidays’ collapse face uncertainty, possible extra costs, and a tough fight to reclaim their money. Stay alert, keep receipts, and check your insurer and card company options ASAP.
