26 November 2009

Collapse of biggest operator in Ireland

Budget Travel, Ireland’s biggest operator, ceased trading yesterday.

The company is to be wound up after a provisional liquidator was appointed at the high court in Dublin, RTE reported.

The closure will lead to the loss of 172 jobs and the closure of 17 travel agencies.

Almost 750 people are on holiday abroad with the operator.

Up to 380 people were due to fly out on holidays with Budget Travel between tomorrow and Sunday from Dublin and Cork.

But flights have been cancelled and people are being told they can get a refund from the Irish Commission for Aviation Regulation.

Budget Travel managing director Eileen O'Sullivan was quoted by Irish media as saying: "This has been a painful and distressing time for us all and we deeply regret that this situation has arisen.

"We will do everything we can to minimise the impact of this decision especially on those who are currently travelling with us."

The company was established in May 1975 and had a 30% share of the market.

by Phil Davies

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Your Comments (2)

Travel Agents

Budget Travel ditched travel agents a few years ago, and then opened up branches in competition with their former friends. Some would say karma, but I think they underestimated the value of a good travel agent selling your product.

By W Shearer, Thursday, December 3, 2009
WHY?

What went wrong, not the recession? Could it be wrong strategy?Competition? Operating below cost? Bad management? A big company which has so many branches, people and resources and probably loyal customers too ..surprise it crashed. One would be interested to know the reasons for a case study!

By Guru Prasad, Friday, November 27, 2009