The number of travel company insolvencies is 13% higher than for the same period last year, according to figures released by PricewaterhouseCoopers (PwC).
The report follows the news that Ireland’s largest travel firm Budget Travel has ceased trading.
The company, which is owned by Scandinavian company Primera Travel, announced it was going into liquidation on November 25 after Ireland’s Commission for Aviation Regulation refused to renew its licences.
According to reports by Independent.ie, more than 700 Budget Travel customers are stranded overseas.
This latest failure is a sign that trading conditions are getting tougher for travel businesses. So far this year, the travel sector has suffered a relatively low rate of insolvencies compared with other hospitality and leisure sectors, said PwC director Ian Oakley-Smith. But, he warned, this is starting to change.
“While the weak pound and domestic holidaymaker benefited many travel companies, there is also an element of lenders not wishing to add to the company casualty list and propping up loss-making business,” said Oakley.
“Ski slopes will be desolate this season, as will early summer bookings. This may mean a ticking time bomb for some struggling travel companies that are currently being valiantly assisted by financial stakeholders.”