More than 100,000 affected as On Holiday Group goes bustConsumers may have to pay twice for their hotels
08 March 2014
Travellers who have already paid a travel agent for their accommodation may also have to pay the hotel direct after bed bank provider On Holiday Group (OHG) went into administration on Friday.
The company said that 113,500 bookings are affected. It supplied hotel rooms to many online travel agents such as On the Beach, but has been unable to pay all hotel bills. This has left its overseas hotel partners with estimated unpaid debts totalling more than £7 million.
If you think your travel agent may have used On Holiday Group, check with them whether your booking is affected in any way.
See our guide to the travel insurance policies that will cover you for holiday failure and other unexpected events.
OHG said it plans to return money it held in client accounts back to travel agents over the next few days. Travel agents may contact hotels to guarantee payment. However, they could also tell customers that they must pay hotels direct and reclaim the money on return, even if they have previously paid their travel agent. OHG said holidaymakers already in resorts will have to pay any bills due to the hotel and then claim it back from their travel agent.
The company said the situation should be handled in an 'orderly fashion' by travel agents and very few holidays would be 'impacted'.
If your holiday includes a flight with hotels and/or car hire booked by the same tour operator or travel agent, you will be covered by the Atol scheme which protects your money if a company goes bust.
So if a travel agent holding an Atol booked you onto a flight, as well as a hotel supplied by OHG, then that agent would have to make sure you were provided with suitable accommodation.
If you had booked directly with OHG or booked only the accommodation through a travel agent then you would not have Atol protection and might only get money back if you hold Supplier Failure Cover insurance.