The collapse of FTI Touristik has led to the cancellation of approximately 175,000 package holidays, affecting travellers worldwide.
- FTI Touristik filed for insolvency, unable to find a solution for existing bookings despite extensive negotiations.
- The company’s insolvency administrator confirmed that all package holidays from 6 July onwards have been cancelled.
- Refunds will be provided for package holidays, but not for individually booked components like flights or hotels.
- Franchise partners have secured the future of 230 travel agencies previously owned by FTI.
The unexpected insolvency of German tour operator FTI Touristik has resulted in a significant disruption for around 175,000 holidaymakers who had booked package holidays. Despite intensive efforts, no satisfactory resolution was found to accommodate the existing bookings, leading to inevitable cancellations.
FTI Touristik, one of Europe’s largest operators, filed for insolvency on 3 June. The insolvency administrator, Axel Bierbach, elaborated on the challenges faced, citing their unsuccessful attempt to negotiate a takeover of the existing holiday packages, despite engaging with numerous market participants. Although solutions seemed promising at times, none materialised that could sustain the continuation of the booked tours.
Efforts were made in collaboration with FTI and the German Travel Guarantee Fund (DRSF) to keep the booked holidays viable. The DRSF expressed willingness to cover refund claims in partnership with potential acquiring competitors, aiming to allow holidaymakers to enjoy their planned vacations with minimal financial distress. However, the required agreements were unattainable.
In a statement, Bierbach highlighted the economic impact of the decision on FTI’s longstanding partners in the destinations, particularly hotels and transport companies. The insolvency strained these relationships, as many partners no longer felt compelled to honour their commitments, complicating any potential operational recovery.
Refunds will be issued for package holidays via the DRSF, but it is noteworthy that individual components such as flights and accommodations are excluded from this assurance, leaving many customers without recourse for these expenses.
Despite the setback, a deal was reached to ensure the continuity of 230 TVG-branded travel agencies, now transitioning under new franchise ownership. This move aims to salvage part of FTI’s business structure and safeguard jobs, though the main focus remains on resolving the immediate fallout from the cancellations.
The unfortunate insolvency of FTI Touristik has imposed significant challenges on travellers and the travel industry at large, underscoring the complexities of financial recovery in the sector.
