Insolvency of FTI: Advice for Affected Parties
A well-known travel agency known as FTI has recently declared bankruptcy. This news has left many vacationers questioning what this means for their upcoming trips. Should they cancel and book with another provider, or wait and see? We spoke to travel expert Eugenie Zobel to get answers to some key questions.
In Europe, FTI is the third-largest travel provider. The company filed for bankruptcy on Monday and has since appointed an insolvency administrator. This leads us to ask, how does this affect summer vacations? Does one need to cancel and look elsewhere, or wait for further updates?
Eugenie Zobel, a travel expert at the magazine "Finanztest", shares her insights on this matter.
Who is impacted by this?
It's essential for travelers to check their travel documents and insurance policies as they may mention the organizer of the trip. This information helps determine if you're affected by the bankruptcy and if your vacation can continue as planned.
Some people have booked their vacations through FTI's platforms such as www.fti.de or www.5vorflug.de. However, the trip might be organized by a separate provider in these cases. In this situation, you're fortunate since FTI states, "Not affected are booked services from third-party providers that were booked via the FTI Tourism portals." TUI, Alltours, Dertour, and vtours are the mentioned providers.
If FTI, 5vorFlug, or BigXtra is the tour operator and you booked through their platforms, then you're affected by the insolvency. As Zobel explains, "If FTI, 5vorFlug, or BigXtra is the tour operator, consumers are affected by the insolvency. And that's even if they booked their trip through another booking platform."
What about those already on their way?
FTI has stated they'll carry out the trip as planned, or organize the return transport for those on vacation. They are legally obligated to do so for package tours. If you feel unsure, reach out to the tour guide or the provider for clarification.
What should be done for upcoming trips - should they be canceled?
For now, Zobel recommends staying calm. "Travelers should remain calm - even if this is currently very nerve-wracking. I would initially assume that the trip will take place."
Additionally, those who have not heard from FTI should not cancel their trip prematurely. This could lead to legal problems and potential cancellation fees. However, Zobel urges caution as "if FTI can and wants to organize the trip, a premature cancellation could lead to legal issues."
What happens if the remaining payment is still due?
If you've paid only a deposit for an upcoming trip, there's an option if FTI asks you to pay the rest of the money: "Don't pay until there's a guarantee of the provision and implementation of the travel services." It's crucial to communicate clearly with the company, letting them know you're willing to pay as long as there's assurance.
What if the trip was already booked?
Those who have already paid for their trip through FTI via direct debit have the option of returning the money to their bank account. It's possible to receive their money back within eight weeks. However, Zobel advises against this. "Consumers should remain calm - even if this is now quite challenging. Package tourists are well protected."
How are affected consumers protected?
In the case of bankruptcy, the protection of the German Travel Compensation Fund (DRSF) kicks in. "Consumers must return their money in full," Zobel states.
FTI's statement for package tours starting from June 5 (Wednesday): "We are currently doing everything we can to make your trip possible as planned." But if FTI doesn't cancel the trip themselves, there's still a possibility it may take place. FTI customers should contact their tour operator for more information on the trip's current status.
In the unfortunate event of bankruptcy, the DRSF offers protection. "Consumers need only provide a guarantee certificate, an obligation every German travel agency must issue before accepting payment for package tours."
This incident brings to mind the bankruptcy of Thomas Cook, which happened about five years ago. However, according to Zobel, "There was chaos in the repayments back then. Some hoteliers demanded money from tourists on the spot. Not all customers received their money back." The legislator has since amended the implementation of the EU Travel Rights Regulation, resulting in "no coverage limit in the Travel Compensation Fund. Consumers who booked a package tour must return their money in full."
However, the DRSF protection doesn't apply to individuals who have booked individual services through FTI, such as rental cars or hotel rooms. FTI's statement regarding this: "We're currently checking whether you can still claim the booked services and will inform you shortly."
What if the trip is scheduled to begin in a few weeks?
As long as FTI doesn't cancel the trip, there's a possibility it may still happen. FTI customers should stay updated on any changes by contacting their tour operator for the latest information.
The business has set up a webpage on the internet (www.fti-group.com/de/insolvenz) concerning the bankruptcy. There is also a free phone number provided at +49 (0) 89 710451498. Due to "heightened call volume," not all calls are being answered as of now, according to FTI. The company is "striving to increase" its capabilities (as of June 4, in the early afternoon).
If you have a trip scheduled to happen in a few weeks, it's best to stay calm and wait a bit longer before making a call. "I know this is hard," says Zobel.
The inquiries regarding which trips can go on and when affected people can request refunds instead are presently undecided. This is because the administrator needs to understand the current situation first.
Read also:
- In light of this situation, affected consumers should check their credit card statements to see if any charges from FTI are present, as they may be eligible for credit card protection.
- Consumers who have booked their vacations through FTI's platforms or are unaware of the tour operator might benefit from consulting a travel law advisor to understand their rights and options.
- The tourism industry as a whole may experience a negative impact due to the insolvency of FTI, potentially leading to decreased confidence in other travel providers and a need for financial tests to ensure stability.
- Many affected consumers are considering cancelling their trips and turning to alternative tour operators to minimize their risk, which could result in a significant loss for FTI and the credit card companies involved.
- As the situation unfolds, it's essential for tour operators to communicate openly with their customers, providing updates on trip statuses and offering solutions to mitigate any financial impacts, maintaining trust within the tourism industry and among consumers.
