One of Europe's Leading Tour Operators Declares Insolvency

17-06-24

FTI Group, one of Europe's largest tour operators, has filed for receivership and declared insolvency. The Munich-based company has faced a number of problems, including a significant decline in bookings, according to a press release.

"After a long and complex investor process, a consortium of investors was announced in April 2024. However, booking figures have fallen short of expectations despite the positive news. In addition, numerous suppliers have insisted on payment in advance, which has increased the need for liquidity. This has led to the need to declare insolvency on legal grounds," the company explained.

FTI Group is prioritizing support for travelers affected by the insolvency. They are working hard to ensure that ongoing travel can be completed as planned. However, travel that has not yet commenced will likely not take place or will take place on a partial basis as of June 4, 2024.

A website and hotline have been set up to assist customers, answer their questions and facilitate refunds and other technical issues as efficiently as possible.

The German Foreign Office has offered its support to travelers abroad, ensuring repatriation and consular assistance if necessary.

Impact on tourism and aviation

FTI Group's declaration of insolvency could cause chaos during the summer vacations, affecting thousands of travelers who could face the cancellation or interruption of their organized trips. Tourists will have to look for alternatives or consider spending the summer at home.

The travel industry and airlines in Germany have already faced multiple challenges in recent months, exacerbated by the Lufthansa strikes and the Boeing crisis, which has affected aircraft availability. In addition, the pandemic, rising living costs and interest rates have dampened travel demand.

Recently, the European aviation industry has called for greater government support to accelerate the transition to renewable energy, including the production and procurement of sustainable aviation fuel (SAF).