European tour operator FTI Touristik, regarded as the third largest tour operator in Europe and “too big to fail”, has filed for insolvency at a court in Munich.
Some customers’ pending trips are likely to be cancelled and those already on holiday may find their trips curtailed.
The group owns several travel companies, and while the FTI Touristik brand is directly hit with immediate effect, industry-watchers say all the group’s companies will be drawn into insolvency filings with the exception of high-luxe adventure operator Windrose Finest Travel.
German news site, aussiedlerbote.de says that during the COVID-19 pandemic, the company is believed to have received around EU600 million (R2 billion) in aid from the German government and that needed to be repaid. According to University of Wilhelmshaven tourism expert Torsten Kirstges, FTI produced a “weak” 2022 balance sheet.
In April FTI announced a €125 million (R2,5 billion) investment by a consortium led by Certares. But it appears to have come too late as confidence in the company had dwindled and booking figures had already fallen short of expectations, while suppliers had demanded advanced payment.
“As a result, there was an increased need for liquidity, which could no longer be bridged until the closing of the investor process,” said a statement by the company.
According to Greece-based Anglophone news website ekathimerini.com, FTI normally sends hundreds of thousands of Germans and other visitors to Greece, mainly to Crete, Rhodes, Kos and Corfu, with 7 500 FTI customers currently in the country. The news website claims FTI owes 300 hotels in Greece about €1,8 million (R36,5 million) for 2023 bookings.
A support website www.fti-group.com/en/insolvency has been set up for customers affected.
Some observers suggested a white knight might come to the group’s rescue. And Kirstgest believes that tourism remains strong.
“Despite the FTI insolvency, people will continue to travel, and the billion-dollar market will be shared among other operators,” he told aussiedlerbote.de.
