Hotel connect goes bust – even the good companies can go

It is with far too much frequency that I write about another travel company going under. This time it’s hotel specialist Hotel Connect.
The frightening thing about this insolvency was that Hotel Connect was generally regarded in the industry as being well run with good people and good technology. Other insolvencies have generally been from low cost operators who get caught out when their wafer thin margins are unable to absorb a big event like a credit crunch, airline strike, civil unrest or volcanic ash.

More than 90% of Hotel Connect’s business came from travel agencies rather than direct from the public and so perhaps it is as much a reflection on the state of the agency market at the moment as their own business.

It is no secret that consumers are a lot more confident these days booking simple hotel bookings themselves direct with the hotel, especially on short breaks or European trips. They are increasingly turning away from agencies to book these simple trips.

Because of the sheer number of travel companies going under at the moment I have produced a guide to help you assess whether a travel company you are thinking of using is low, medium or high risk. Just visit:-

Holiday Company Risks – How to spot risky travel companies

If you want any further advice on what to do if your holiday company goes bust or if you want an opinion on a company you are thinking of using then feel free to leave a comment.

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