16 July 2010

Update on Monster Travel closure

ABTA has issued a warning to agents who are advertising for customers to rebook following the cessation of Monster Travel.

It reminded agents that because Monster Travel was a managed branch of The Freedom Travel Group, Freedom will be honouring all bookings.

"If members encourage customers to rebook they will have been double-booked and may look to the member for recompense," it warned.

On Facebook and other social media websites, some agents criticised rival companies for acting like vultures by being so quick to place Google ads.

They also expressed their sadness for the staff of Monster Travel, particularly for those who had joined the company after losing their jobs at Freedom Direct.

Online and call centre travel agency Monster Travel ceased trading yesterday after just over two years in business.

The company, part of the Freedom Travel Group, employed 94 people.

Only last April the company had a major recruitment drive for an extra 40 staff.

Some of those who got the jobs were ex-employees of Freedom Direct Holidays, which had ceased a week earlier.

Ironically, at the time the Monster managing director David Hawke, said it was a "sad indictment of the times" that the firm had received 500 applications in just three days for the new jobs.

Hawke, formerly head of call centre business for TUI, founded Monster Travel with his partner Julie Gilmore.

Jane Atkins, managing director of The Freedom Travel Group, said: "The business was a Freedom Travel Group member that sold package holidays and also from time to time repackaged holidays under our ATOL bond.

"Under our managed agent agreement with ABTA we will take on all forward bookings, ensuring that customers travel as planned and that trade suppliers are paid.

"We are very disappointed and saddened that Monster Travel is no longer in a position to trade."

* Have you been impacted by the closure of Monster Travel? Do you sympathise with those who have lost their jobs? Do you think there are more failures to come? Please share your views by clicking on ADD A COMMENT below.

By Bev Fearis

Post your comment

Your Comments (12)

Hope for Monster Travel staff

It is very sad to hear of so many people losing their jobs, no matter what company you work for or competitor everyone has bills to pay mortgages to keep to and family to support. Purpleholidays.com would like to advise that they will interview any ex Monster Travel home working staff for home working positions. To submit your application please send your CV to jobs@purpleholidays.com please state in the subject line Monster Travel to ensure that your CV is looked at immediately by one of the recruiting team.

By Bobbie Karagkounis, Monday, July 19, 2010
jumped ship

shame that the owners of Monster, two months before their collapse, registered 'TheCheapHolidaysCompany' (check the companieshouse.gov.uk website), even using their home address as the registered office address. Did they know the end was near ? Well, with 800K loss last year, it was quite obvious really.

By don keigh, Monday, July 19, 2010
Familiar Tale

How many times has an agency been launched advertising mega-low prices, only to then go bust after a period of unsustainable growth? This whole event was utterly predictable given the state of the economy. I've been around that track myself. Its not nice, but there's plenty of work out there for people prepared to pull their sleeves up.

By Gary Phillips, Saturday, July 17, 2010
Oh Really?

Hang my head Alex or whoever? I think not. Please learn to read as i DID say that i sympathised with those who lost their jobs but NOT with your 'PERSONAL FRIENDS'. That's the crux of it with you i'm afraid. You should give a hack (whatever that means in this instance)about discounts as, unbeknown to them it's the sole reason why these people have lost their jobs. Now go away and stop bothering me with your stupid remarks.

By martyn coope, Friday, July 16, 2010
Two points.

Can I just point out I started this topic of chat,therefore you asking me to go away is incorrect and thus I did not deserve your verbal attack. I think enough has been said now.

By Alex Giles, Friday, July 16, 2010
Tut tut

Sorry have we touched a nerve? At least others do back me in what i said so perhaps not so useless! Yes, they have helped trash the cruise market!

By martyn coope, Friday, July 16, 2010
NO Martyn -

No raw nerve Martyn - what I was saying was I felyt sorry for the 100 people losing their jobs - I don't give a hack about discounts - it is people, families, mortgages and jobs at the end of the day... Hang your head.

By Alex Giles, Friday, July 16, 2010
Is Discounting to blame

I am in total agreement with Martin Owens. This Discounting Culture between Operators and Agents has to stop. Why Discount something that the Operator has already reduced by 45% - 50%.And Next time you give that Client a Discount, they'll come back and demand more.Some of the undercutting is incredible, and not content with the discounting, Just look at how much On-Board Spend levels have gone from &#pound;50.00 to Hundreds of Pounds in recent months. It's sad when a good company fails and you have to feel sorry for staff loosing Jobs, but if the Discounting culture causes the downfall, I can have no Sympathies

By Lee Harrison, Friday, July 16, 2010
Sad Demise

It is always sad to see any agent cease but as Monster Travel advertised cruise on ridicuolously low margins on teletext to gain custom it was enivatable that an agent would go, It would not surprise me if more agents go in the coming months, some cruise agents are operating on 1% - 3% on a &#pound;15-*45 per booking onm an average of &#pound;1500 pp short term great looks good on gross sales but long term it can not be sustained. At least all of Monster Travels bookings were protected through the Freedom Group and none of these clients will loose their holidays, but before long a big cruise agency will go and it will cause uproar a numnber of years go a big agency went with 1000's of travellers, will agents & customers not learn knocking porices down and asking for 10/14% discounts can not continue. I have also heard of a cruise agency, telling people that no matter what quote they get they will not be beaten on price, how can they sustain that, nowadays agents are too quick to discount cruises by stupid amounts, which affects their bottom line, also the clients are not matched to the cruise based on needs & suitability and this is why Repeat business foir these agents is non existent and leads to losses. I am truly upset for every member of staff that has lost their job at Monster but do not feel sorry for a company thats sold at ridicoulous prices on text and trashed the cruise market.

By Martin Owens, Friday, July 16, 2010
not what i said...

Thanks Martyn for your utterly useless comment.

By Alex Giles, Friday, July 16, 2010
Sympathy? No!

Whilst i do feel sympathy towards the staff, i have no sympathy for MT. They have tried to undercut every agent by selling purely on price with little or no after-sales service. Once you had bought from them you were on your own. Companies such as MT should remember, you have to make a profit to survive.

By martyn coope, Friday, July 16, 2010
Demise of Monster

As a personal friend of David and Jules, this is a tragic and very sad end to the dream. Together with some very talented people they have worked tirelessly to make a success of Monster and for the North East it is a tragedy for those 94 people. Sad times.

By Alex Giles, Friday, July 16, 2010