Disrupted FTI-flat-rate trips: Reimbursements should start
The summer began with a shocking news for travelers: Over 250,000 all-inclusive travel bookings were cancelled due to FTI's bankruptcy. Money already paid is to be returned soon.
The bankruptcy of tourism conglomerate FTI at the beginning of June disrupted many vacation plans. Hundreds of thousands of all-inclusive travel bookings were cancelled. Those who had already made payments can soon get their money back - the German Travel Compensation Fund (DRSF) plans to start the reimbursement process, according to their own statements. Here's what affected parties need to know - answers to important questions:
Which trips are affected?
Firstly, regarding the reimbursement of payments for all-inclusive trips that were booked with the brand labels FTI, 5vorFlug, and BigXtra and were cancelled due to the insolvency of FTI Touristik GmbH or BigXtra Touristik GmbH. Secondly, regarding payments made on site to continue ongoing trips - claims for these are also valid.
How many people are affected?
Probably hundreds of thousands. According to DRSF, they need to process and pay out claims from over 250,000 cancelled all-inclusive travel bookings.
How does the reimbursement process work?
As the DRSF writes on their website, all claimants will be actively contacted if contact information is available. Otherwise, affected parties can also register on the online reimbursement portal as soon as it is activated - even if they are not contacted by the DRSF. It is expected that the reimbursement options will be activated within this week, according to the industry portal "fvw.de".
What documents do claimants need to submit?
The booking confirmation of the trip, payment receipts, and - very important - the travel insurance policy of the DRSF, which the organizer sent with the booking documents. Those who paid on site should have the corresponding receipts ready. The required documents are then uploaded to the online reimbursement portal. The DRSF checks the incoming reimbursement applications and pays out valid claims.
What is covered by travel insurance - what is not?
The DRSF defines all-inclusive trips as follows: Travel organizers bundle several services into a package and sell it at a fixed price - for example, hotel, flights, and transfers. If two services - such as a flight and a hotel - are offered in a package, it is therefore an all-inclusive trip.
What about individual services like a hotel room booking?
The DRSF does not cover these. The same applies to individually booked flights or transfers. Individual car or camper rentals through the brands DriveFTI, Cars & Camper, or Meeting Point Rent-a-Car are also not covered according to FTI.
In this case, the only option is to try to get payments for future services back through a chargeback with the payment service provider. Otherwise, claims can be made in the regular insolvency proceedings. However, according to consumer centers, one can expect a low percentage of compensation in this case.
Where can I find information?
FTI has an information website online about the insolvency with answers to many questions that may concern affected parties. The Travel Compensation Fund also has a FAQ section on their website, as well as a hotline: 030 7895 4770 (Mo. - Fr., 8 am - 7 pm).
- The bankruptcy of FTI impacted many vacation plans in the tourism industry, resulting in the cancellation of over 250,000 all-inclusive bookings.
- Consumers who had already paid for their all-inclusive trips with FTI, 5vorFlug, or BigXtra can expect to get their money back through the German Travel Compensation Fund (DRSF).
- Credit card users who made payments for their trips may need to apply for chargebacks if the travel organizers are insolvent, as they may not be fully covered under Travel Law.
- If travelers are facing insolvency issues with travel organizers, they can seek information and assistance from the FTI information website or contact the Travel Compensation Fund's hotline for further guidance.
