Insolvency firm predicts more travel companies will collapse

24.08.10

Following the collapse of Kiss Flights, affecting the holiday plans of 73,000 people, Sun4U affecting 14,000 and Goldtrail affecting almost 70,000, a leading insolvency firm has predicted more misery for holidaymakers, with up to 20 more operators will go bust this year, the Express reports.

Insolvency company Begbies Traynor, which has been appointed as administrators of Goldtrail, said the effects of public sector cuts will worsen consumer confidence adding to the 13 failures already this year. Partner Nick Hood told the newspaper: ‘We will see a significant number of additions to the list as we progress into the autumn. If the figures for bookings for winter 2010 and for spring-summer 2011 soften, as I expect,the number of additional failures this year will be between 10 and 20.'

'Holiday and flight companies are among the discretionary spending-reliant sectors most exposed to the recent slump in consumer confidence, which will worsen as public sector cuts bite. The prospects look seriously clouded, with further failures an inevitability.’

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