Lowcostholidays Goes Under Rendering Hoteling.Com Reservations Worthless

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A LoyaltyLobby reader dropped me an email yesterday about the situation with this Spanish based travel company called Lowcostholidays that apparently went into administration on July 15, 2016.

Hoteling

Part of the company was a hotel booking engine called Hoteling.com that I have come across few times but never used to make a reservation.

Those that have booked flights from the company are likely safe because these are settled weekly/several times a month. You should check that the ticket has been issued and it is valid for travel, however.

The situation with those that have purchased hotels from the company and prepaid them is not as good. Although the company collected payment upfront (at least for prepaid reservations), these are not usually settled before the guest actually stays. If the hotel knows that they are not going to get paid by the agency, those reservations are canceled or the guest asked to pay again.

Here’s partial information the company has up on its websites:

Customers who have booked Hotel Accommodation only

You may be required by the hotel suppliers, transfer suppliers and car parking suppliers (if you have booked these services) to pay them locally. If you have to pay, you may be able to reclaim against:

  1. Your travel insurance provider (if you have travel insurance*)
  2. Your credit card provider for services not received.

It would be advisable for you to keep all receipts of expenses incurred in order to claim a refund or compensation in due course.

Customers Due to Travel

Customers who have booked a Holiday combination (Flight plus Hotel)

If you have booked a combination flights and accommodation (+ other services, e.g. transfer,car-hire, etc) your contract for the flights will be direct with the airline and payment will have been made to them in most cases at time of booking. If you are in receipt of your flight ticket from the airline you will be able to check-in and travel as normal. If you have not received your flight confirmation details, you should contact the airline directly to determine the status of your flight reservation. If the airline informs you that your reservation is not confirmed then you will need to rebook your flights with another provider and make a claim using the options outlined below:

Your hotel reservation may no longer be valid so you may have to re-book your hotel accommodation. We recommend customers verify the status of their hotel booking directly with the hotel. In the case where a hotel reservation is not secured or for other services that you may have reserved via Lowcostholidays.com (e.g. transfer, car-hire, airport parking etc) with another provider, you may be able to reclaim lost amounts against:

  1. Your travel insurance provider (if you have travel insurance*)
  2. Govern de les illes Balears (www.caib.es) who is the regulator of the Spanish Travel Agency.
  3. Your credit card provider for services not received.

It would be advisable for you to keep all receipts of expenses incurred in order to claim a refund or compensation.

Customers in the Republic of Ireland only

Lowcostholidays Spain S.L. was licenced with the Irish Commission for Aviation Regulation (“the Commission”). The Commission holds a bond for the repatriation of and refund to customers who have paid for forward bookings with the Company (such bookings including ‘flight only’ as well as package holidays originating in the Republic of Ireland). Such customers are recommended to visit the Commissions website at http://www.aviationreg.ie for details of how to make a claim

Conclusion

This is a good time to remind that paying using credit card can usually help situation like this when vendor/merchant goes under. You can dispute the charge with the Visa, MasterCard or Amex and should be able to get full refund.

Those that paid using other methods to this merchant need to contact the regulators and hope to be able to get at least some of the money back.

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