‘Ticking time bomb’ for struggling travel firms
Director Ian Oakley-Smith, responding to Ireland’s biggest operator Budget Travel going to the wall, said: “Despite an increase in failures this year, the travel sector has experienced a relatively low rate of insolvency, compared to other hospitality and leisure sectors, so far.
"While the weak pound and domestic holidaymaker benefitted many travel companies, there is also an element of lenders not wishing to add to the company casualty list and propping up loss making businesses.
"Ski slopes will be desolate this season, as will early summer bookings, and inevitably this may mean a ticking time bomb for some struggling travel companies currently being valiantly assisted by financial stakeholders."
PwC travel & tourism insolvency statistics
Q4 2007 = 19
Q1 2008 = 11
Q2 2008 = 12
Q3 2008 = 24
Q4 2008 = 15
Q1 2009 = 27
Q2 2009 = 12
Q3 2009 = 14
Total = 134
Phil Davies
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