The insolvency of FTI Touristik has led to the cancellation of approximately 175,000 package holidays, impacting numerous travellers and industry partners.
- FTI Touristik’s insolvency announcement was made on June 3, 2024, citing a “high three-digit million” figure in travel bookings.
- Efforts to negotiate with market participants for taking over existing bookings were unsuccessful, prompting widespread cancellations.
- Refund mechanisms are in place for package holidaymakers, but individual service bookers are not covered by the German Travel Security Fund.
- This development significantly affects FTI’s long-standing relationships with hotels and transportation services in various destinations.
FTI Touristik, a German tour operator, has recently cancelled about 175,000 package holidays following the announcement of its insolvency. The cancellation affects holidays from July 6, 2024, onwards. According to insolvency administrator Axel Bierbach, the volume of existing travel bookings amounted to a ‘high three-digit million’ figure. This move has sent ripples through the travel industry, leaving numerous travellers without their anticipated holidays and creating operational challenges for the associated travel services.
The insolvency was publicised on June 3, 2024, after attempts to secure a buyer for the outstanding package tours proved futile. Bierbach stated that considerable efforts were made to negotiate with several market participants, yet no workable solution emerged to take over the existing bookings. Consequently, all trips scheduled from July 6 have been officially cancelled.
For package holidaymakers affected by these cancellations, the German Travel Security Fund will ensure refunds for any deposits and advance payments. However, those who booked individual components like flights or hotel stays separately are not eligible for refunds from the DRSF. Bierbach remarked, ‘We did not take the decision to cancel all trips lightly,’ acknowledging the stress and uncertainty faced by customers awaiting their holidays.
The situation has further strained FTI’s long-established partnerships with hotels and transport providers. Several of these partners have opted out due to the insolvency, rendering it impractical to continue the planned holidays. The economic implications are substantial, given the scale of FTI’s operations.
Despite the current setbacks, FTI’s provisional insolvency proceedings strive to maintain business operations to the extent possible. Efforts are ongoing to explore reorganisation options within the FTI Group, including discussions about the future of 230 TVG branded travel agencies in Germany.
The cancellation of FTI’s package holidays underscores the profound impact of its insolvency on both customers and the broader travel industry.
