Online Travel Group ‘ran out of options’ – administrator
The Online Travel Group, which failed last week, had credit terms “drastically shortened†prior to its collapse.
The London-based company, launched in 1999, had a turnover of £7.7 million for the year to March 2007, up £2.5 million from the previous financial year, according to administrators Neil Bennett and Michael Healy of Leonard Curtis who are in the process of selling the businesses World Travellers (UK) Ltd and Online Travel Insurance Services.
Online Travel operated a number of travel websites providing travel insurance, and bookings for ferry crossings, airport parking, hotels and holidays (see previous TravelMole story). Â
All 16 call centre staff based in Leeds have been made redundant. There are currently two staff members at the company’s London headquarters out of a total staff of 20.Â
There is no indication of the financial situation or debts of the company.
Bennett said: “It is apparent from our brief investigation that the company had run out of options. Â
“We understand that credit terms had been drastically shortened by key trading partners, and this, combined with the credit crunch and general economic downturn, lead to a dramatic cutback in consumer spending on all but the essentials. Â
“We are currently selling parts of the business to preserve value where possible.â€
He added: “Ferry bookings where passengers have already travelled are largely unaffected.
“We understand that forward bookings are mostly being honoured by ferry operators under their agency agreements. Â
“All package holidays, confirmed and not yet travelled, are being dealt with by Freedom Travel Group to protect customers’ holiday bookings and ensure no disruption to confirmed holiday plans.â€
by Phil DaviesÂ
Â
Phil Davies
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airbnb eyes a loyalty program but details remain under wraps
Air Mauritius reduces frequencies to Europe and Asia for the holiday season
Major rail disruptions around and in Berlin until early 2026