Youtravel has halted bookings following the insolvency of its parent company, FTI Touristik, impacting numerous travellers.
- Holidaymakers are being asked to cover their accommodation costs locally due to the financial collapse of FTI.
- Provisional insolvency administrator, Axel Bierbach, is prioritising solutions for the 60,000 holidaymakers currently affected.
- Youtravel extends booking cancellations to 14th June 2024, with no charges for affected customers.
- FTI Touristik is collaborating with the German Travel Security Fund to safeguard consumer interests.
In a significant development, Youtravel has decided to extend its suspension of bookings into a second week. This comes after its parent company, FTI Touristik, declared insolvency, presenting substantial challenges for the travel industry. Affected holidaymakers have reported being asked to pay for their accommodations directly at their destinations, a situation arising from FTI Touristik’s financial collapse.
Restructuring expert and lawyer Axel Bierbach from Müller-Heydenreich Bierbach & Kollegen has been appointed as the provisional insolvency administrator. His primary focus is on finding feasible solutions for approximately 60,000 holidaymakers currently abroad. Bierbach will also explore potential sales of business divisions within Germany and internationally.
Youtravel announced the cancellation of all bookings until the 14th of June, ensuring that no cancellation fees will apply. This move aims to alleviate some of the operational difficulties faced by travel partners and customers alike. The company states that they are committed to maintaining open lines of communication and providing support during these challenging times.
FTI Touristik, one of Europe’s leading travel groups, has ceased all holidays scheduled until June 10th and is seeking alternative travel providers. The goal is to find a viable solution by July 1st. In an attempt to protect consumer rights, FTI is working with the German Travel Security Fund to ensure that affected customers do not lose money due to the insolvency.
According to Bierbach, efforts are being concentrated on ensuring the safe and scheduled return of the travellers currently on holiday. Future trips planned after June 10th are also under scrutiny to determine their feasibility. He expressed optimism that by July, a resolution could be in place, ensuring continuity in services for FTI Touristik’s clientele.
In response to the turmoil, Youtravel’s management is actively exploring options to sustain their business. The company has also implemented a task force dedicated to supporting travel partners during this turbulent period. Acknowledging the operational setbacks caused by FTI’s insolvency, Youtravel’s general manager expressed gratitude for the understanding shown by partners and praised the dedication of their internal teams.
Meanwhile, FTI guarantees that salaries for its approximately 850 employees will be covered until August through insolvency benefits. By working closely with the DRSF, they aim to expedite the resolution process and minimise impact on holidaymakers. The quick response and collaborative efforts are key to mitigating the fallout from this insolvency event.
Youtravel and FTI Touristik are strategically navigating complex insolvency challenges to protect consumer interests and sustain business operations.
