It comes amid fears that hotels have increased room rates as peak season takes hold, meaning substantial price rises for those that had rooms booked through Lowcost which were subsequently cancelled following the group’s failure.
If agents dynamically packaged they will be liable to refund or replace a customer’s holiday, and if they are not covered by supplier failure insurance, they will have to foot the bill out of their own pockets.
Lawrence Assock, head of commercial partnership and underwriter at insurance company Affirma, said there was further frustration for some agents, as they realised that their own supplier failure insurance didn’t go far enough.
Lowcost collapse: The high cost for agents
Bed banks
Sophie Griffiths
27 July 2016
Large numbers of agents could yet take the hit for the failure of Lowcosttravelgroup, as it emerged many had failed to take out complete supplier failure insurance, leaving them liable if they dynamically packaged holidays for customers using the group.
Register for free to continue reading
Get unlimited access to the latest travel industry news and analysis, comment on articles and sign up to newsletters.
Register for free
Already registered? Login here or below.
Having difficulty logging in? Try these tips, or contact support@ttgmedia.com
