FTI Group, one of Europe's biggest tour companies, has filed for insolvency.
The Munich-based business, which has recently been hit by a number of problems including poor bookings said in a press release: "After a lengthy and complex investor process, the entry of a consortium of investors was announced in April 2024. Since then, however, booking figures have fallen well short of expectations despite the positive news.
"In addition, numerous suppliers have insisted on advance payment. As a result, there was an increased need for liquidity, which could no longer be bridged until the closing of the investor process. The filing for insolvency has therefore become necessary for legal reasons.
"Supporting travellers affected by the consequences of the insolvency is now a top priority for the FTI Group. We are currently working hard to ensure that trips that have already started can be completed as planned. Trips that have not yet begun will probably no longer be possible or only partially possible from Tuesday 4 June 2024."
FTI also highlighted that details of how to handle traveller information and the insolvency measures to be implemented were still being worked on.
Additionally, a website and a hotline have been set up to support customers, answer questions and get refunds and other technicalities sorted out as smoothly and efficiently as possible.
Summer holiday-goers likely to face chaos
Travellers hoping to jet off this summer could face a number of disruptions, with several package holidays being cancelled or cut short. Holidaymakers will need to find other travel options or face a summer at home.
For travellers stranded in foreign countries, the German Foreign Ministry has extended support, saying that it would help with repatriating tourists to their respective countries, as well as give consular support, should the need arise.
Germany has been facing an increasing number of travel and tourism woes in the past few months, especially highlighted by the extensive Lufthansa strikes by employees seeking a pay rise.
Airlines and tour operators are still facing the lingering effects of the pandemic, combined with higher cost of living and interest rates dampening travel demand somewhat as disposable incomes fall.
Recently, the European airline industry called for more government support for airlines to accelerate their transition to renewable energy, by ramping up production of sustainable aviation fuel (SAF), as well as subsidies and grants to purchase it.
