La Manga specialist operator Barwell Travel has ceased trading blaming the soaring cost of operating to the Spanish region due to the strength of the euro.
The firm went out of business yesterday and a message on its website advises any customers who had booked with it to make claims on “Financial Failure Insurance”.
It advises customers who have paid to contact Towergate Chapman Stevens immediately on 01932 334140. Suppliers are advised to contact Bridge Business Recovery.
The Chessington-based operator was bought in 2008 by Leisurefare but remained a totally separate company.
Jeremy Scott, managing director of Leisurefare, said airlines had stopped flying to La Manga, switching services to cheaper destinations like Turkey and this made operating to the destination unsustainable.
He added the resort in La Manga customers stayed had itself been in administration since November last year and quality had dropped.
Due to the lack of airlift Barwell Travel was reliant on lowcost airlines for seats, so none of its forward booked passengers come under the CAA’s Atol consumer protection scheme because they had bought accommodation-only.
Scott said: “No one is going to be left out of pocket. We bought Barwell Travel, it did not work, so we closed it. Airlines have moved capacity from the eurozone so there is less capacity. It’s simple supply and demand.”
When Leisurefare bought Barwell Travel in May 2008, the jobs of its 22 employees were saved and its offices in Surrey were retained.