03 September 2010

Barwell Travel abandons clients

Customers of collapsed operator Barwell Travel have been left in limbo after being told that the financial failure insurance they were sold as part of their packages will not necessarily cover the cost of their holidays.

Although a message on Barwell Travel's website tells clients who had already paid for holidays to contact insurers Towergate Chapman Stevens, a spokesman for the insurance company said today it was unsure if they were protected.

"We have requested our number be taken off the Barwell website because we can't do anything until the company is declared insolvent, which won't be until October 1," said a spokesman for Towergate Chapman Stevens.

"Customers were given financial failure insurance as part of their holidays but we don't know if those due to travel before October 1 will be able to claim refunds as, right now, the company has not been made insolvent."

He said customers of the collapsed holiday firm, which sold holidays to La Manga Club in Spain, were being redirected to administrators Bridge Business Recovery on 020 7025 6130.

James Carr of Bridge Business Recovery confirmed there was no rescue plan for Barwell, which will be declared insolvent on October 1, but he said the firm was unable to advise customers in the meantime.

"It's terrible, people were calling us from abroad yesterday saying that they forced to pay again for their accommodation, but we can't do anything to help them," said Carr.

"We are not dealing with the failure either, so we are telling customers to claim on their credit cards or their insurance, but we don't know if they can claim until the company is insolvent."

Barwell was not an ABTA member.

Although Barwell Travel had an ATOL, it was licensed to sell just 600 packages a year and it is believed the majority of its bookings were for accommodation-only at La Manga Club, which would not have been protected.

The Civil Aviation Authority is investigating the collapse and a spokesman said today it was still unclear if any of Barwell's customers were protected. "To my knowledge we haven't had any calls from customers inquiring about the collapse," he added.

Barwell, founded 40 years ago, had temporarily ceased trading in 2008, but was bought at the last minute by LeisureFare, a tailormade specialist and consolidator with a call centre in London, though it continued to operate independently.

No-one from parent LeisureFare was available for comment today.

By Linsey McNeill and Bev Fearis

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Your Comments (11)

I am not...

going to spend a lot of time dealing with Paul Davis's diatribe, much of which has nothing to do with my assertion that the internet has allowed all sorts of crooks to defraud the public. And I do, by the way, know about the World Wide Web - but everyone reading this posting will know that the term "internet" (meaning "An interconnected system of networks that connects computers around the world via the TCP/IP protocol) includes all sorts of online activities, including the WWW. I will, though, make a some points. 1. He doubts my statement about the emails I receive. Yesterday I received 78 emails before 1700. Only 40 were genuine - although most were trying to sell me things in which I had no interest. The others were all scams of one kind or another. 2. I never said it was cheaper to post a letter than design a website - as I am sure Paul knows very well. My comparison was between emails and post. I, or anyone else, could send thousands of emails for the cost of the electricity that runs our computers; each letter we send will cost around 40p. If Paul could tell me the name of a postage company that can do the job for nothing I would be pleased to use them. 3. And I also know that it is very cheap and easy to set up a website - which is why so many crooks do just that - yesterday I was directed to three phishing websites that looked just like the real thing. 4. I never suggested that everyone on the internet is a crook or that everyone on the High Street is an angel. 5. I never implied that "the public" has no intelligence - but there are enough members of the public who have insufficient intelligence or learning to see through some of the online and other scams to which they are subjected. 6.Rather than suggesting that I know nothing about the new technology why not try Googleing "Travel Industry Training" or some similar term? You'll find my website easily enough - it's usually on page one.

By Richard English, Saturday, September 11, 2010
But who will do the job?

Gary Phillips writes, "...What we need is a pay-as-you-go protection system for ALL bookers of travel, not ABTA...." I suspect that many will agree - but these things don't just happen someone has to make them happen. If it's not to be ABTA or another trade body then I can see no organisation other than the Government that would have the capacity to do the job. Is Government licencing really what the trade wants?

By Richard English, Saturday, September 11, 2010
No significant clarification is needed

Firstly it is a well-reported fact that the internet has allowed crooks to take advantage of the gullible in even greater numbers than has been the case hitherto and the fact that there are many honest traders on the internet does not alter this fact. I receive around 100 emails every day, many of them scams. If the crooks perpetrating these scams had to pay the postage on a letter there would be far fewer of them. Secondly, anyone can set up a website offering travel services at cheap prices without any product being available - and many do, For a bricks and mortar travel agent to set up such a scam far more costs would be involved. Of course some still do; crooks exist everywhere. It's simply that the internet makes it easier for them to start up. And I stand by my words about consumer protection 100%. Few members of the public know (and in many cases care) about their financial protection - but just listen to their squawks when their chosen travel arranger fails to deliver and they lose their cash. Economy with the facts is not the preserve of any particular kind of crook - but it is easier for the online crook to be thus economical. When I was bricks and mortar travel agent my office was there, with its staff, for all to see; many internet-based companies do not even disclose their geographical location (and please don't tell me it doesn't matter online - it matters if you need to track down the man who has absconded with your cash!

By Richard English, Saturday, September 11, 2010
You still do not give the public credit for any intelligence

I quote you Richard. "I receive around 100 emails every day, many of them scams. If the crooks perpetrating these scams had to pay the postage on a letter there would be far fewer of them." Firstly I doubt that statement, it is cheaper to post a letter than design, build, host and maintain a website. Domain names need to be registered and even if owners identities are hidden from the public the police have access to them. The WWW is not a secret society of miscreants out to cheat people. Yes there are scams, but the public usually check out who you are and where you are based. My contact us page and about us page are some of the most visited pages on all of my web sites. You do not give the public any credit for intelligence and in doing so discredit yourself. How many of those 100 emails you receive are scams and of those how many are travel related scams? Are any? You tarnish all with the same brush. Anyway you confuse the Internet with the World Wide Web. These are two totally different entities. Your emails arrive over the internet to your pop box or web based email server. Web sites are hosted on servers (that's computers to you) in various locations which collectively make up the World Wide Web to which you gain access via the internet. This is a travel Blog for travel and tourism. Not a banking blog for some Nigerian Prince to offer dead aunt's millions to be laundered through your bank account. I believe the majority of consumers are aware that they should not deal with a web site who refuses to publish a verifiable address and telephone number. I could just as easily claim all travel agents offer dynamic packages which are not covered by any money back guarantee and fail to inform their clients of that fact. Let's face it some did, maybe they knew, maybe they didn't. But does that mean I should infer to clients not to deal with high street travel agents because they are all rogues? Don't think so Richard! Embrace the new technology Richard, after all, your potential client base have. Hence rise in popularity of booking holidays on-line. Who knows it may improve your business, and hopefully your point of view of the World Wide Web.......or was that the Internet?

By Paul Davis, Saturday, September 11, 2010
My sympathies to ABTA Members

My sympathies are with Roger and other ABTA members who are controlled and at the same time burdened by an out-of-date organisation. What we need is a pay-as-you-go protection system for ALL bookers of travel, not ABTA.

By Gary Phillips, Saturday, September 11, 2010
Thanks accepted!

I quote Richard English. (bad day Richard?) "thank you the Internet for allowing every Tom, Dick and Harry to advertise travel arrangements which, in many cases, have no more existence than Father Christmas." You mean he doesn't exist? You have shattered my dreams. Who do I write to now come December?.......Gutted! As a Tom Dick and/or Harry who functions over only the internet I take exception to your remarks. They are a sweeping condemnation without any foundation in fact whatsoever. Please clarify and qualify your comments. I quote again "Sadly the trade (and especially ABTA) did such a good job of protecting the public's money that many customers think that all travel, regardless of what it is or where and how it was booked, is protected.' This is not giving the public any credit as intelligent functioning human beings. I refer you to our feedback page http://www.astro-holidays.com/clientfeedback.html these are all genuine and unsolicited comments. We are an internet based Tom, Dick and Harry business and I object to your sweeping remarks. Many of the problems currently experienced by our collective client base, were not generated by internet based and non bonded companies, but the established trade who had offered through their retail stores as well as over the internet a range of holidays which were not covered by ATOL. Dynamic packages. Many of the people who have lost their money believed they were protected because they purchased their product on the high street in an establishment displaying ABTA and ATOL logos. Not in every case was the client made aware what they purchased was outside the insurance scheme. This is not the public being stupid this is the retailer being economical with the facts. I feel we should accept there are good and bad in us all, and move on to improve our own little ponds and hope the ripples we create spread outwards. Paul Davis

By Paul Davis, Thursday, September 9, 2010
Towergate Chapman Stevens

There are several things that need to be looked at before comments are made in respect of the credability of Bonding and Financial Failure. Where Barwell actually dynamically packaging ? if not they are not caught by the 1992 EC Package Travel Regulations. 2, If they have not actually appointed administrators are they legally classed as being insolvent? No Bond or Insurance will entertain Insurance payouts until legally deemed Insolvent. Tony Gilpin (Managing Director) Towergate Chapman Stevens

By Tony Gilpin, Friday, September 3, 2010
We are here to assist

Any policy that has been provided by us will be honoured just as soon as the Company is legally wound up. Our policy will only cover monies paid by Cash or cheque. In the meantime we would strongly recommend that anybody who paid by Credit/Debit card contact their card providers where cover is provided by the Credit Consumer Act 1974 &/or the Debit Card charge back scheme. Further information on this operates can be found on http://whatconsumer.co.uk/visa-debit-chargeback

By Tony Gilpin, Friday, September 3, 2010
Happy days...

...when the public knew that they had to look for the ABTA logo and all would be well. Sadly the trade (and especially ABTA) did such a good job of protecting the public's money that many customers think that all travel, regardless of what it is or where and how it was booked, is protected. Thank you EC for the flawed Package Holday Regulations; thank you the Government for your procrastination and taxation; thank you the Internet for allowing every Tom, Dick and Harry to advertise travel arrangements which, in many cases, have no more existence than Father Christmas.

By Richard English, Friday, September 3, 2010
What a shambles!

This must add weight to the increasing demands for a proper all encompassing financial protection scheme for the industry before consumers finally lose faith and book direct. A policy of insurance that will only pay out on insolvancy is pointless, many businesses fail without adminsitrators being appointed, since they want paying as well. Of course total financial protection will never happen but at least lets keep the pressure on ATOL Reform as the longer it takes, the more likely it is that others will follow TUI and try and move as much business as they can out of financial protection altogther

By Alan Bowen, Friday, September 3, 2010
What a sorry state of affairs .....

What a sorry state of affairs and fuel for the press to create more negativity about the travel trade! As I am about to renew my substantial bond in accordance with ABTA regulations, I wonder whether the Package Tour Regulations haven't reached their final stage of meltdown ? Roger Walker, Roger Walker Travel

By Roger Walker, Friday, September 3, 2010