The uncertainty following the bankruptcy of FTI is enormous, the unanswered questions many and the criticisms of the information provided by FTI and the interim insolvency administrator clear, as was seen during an online information event of the German Travel Agents Association (DRV) on Tuesday evening with the participation of about 200 interested parties.
Among others, the managing directors of the German Travel Protection Fund (DRSF), Stefan Mees and Ali Arnaout, were present to provide first-hand information.
One of the key messages was that, travel from the brands of travel agents affected by the insolvency has been cancelled until 10 June. However, neither Mr Arnaout nor Mr Mees was able to specify the timeframe of the later departures. “This question will have to be answered by the interim insolvency administrator, Axel Bierbach. He will have to consider how much money is still available and what it will be spent on,” Mr Mees explained.
When can new reservations be made
DRV Vice President Ralf Hieke, who represented the travel agencies, stressed how imperative the need for reliable information for travel agencies and customers is. He said that as travel agencies lose commissions due to cancellations, they depend on new bookings to keep losses as low as possible. In addition, they want to support their customers. However, there is a risk of double bookings. “We need a quick solution,” he and DRV chairman Norbert Fiebig said, addressing the two managing directors of DRSF, and they responded. As Stefan Mees explained, the interim insolvency administrator is already working on ideas.
Mr Arnaout and Mr Mees also agreed with the travel agencies’ criticism of “poor” communication. According to Stefan Mees, who has been in Munich since Sunday evening with a DRSF team and is working closely with both FTI and Axel Bierbach, they will try to improve communication. He and Mr Arnaout announced that information will be continuously published on the DRSF website. So far, the priority has been to inform customers already on a trip. This, however, will change in the coming days.
Cost recovery statements for hoteliers and airlines
According to the two DRSF CEOs, much has been achieved in the last two days. Among other things, both airlines and all hoteliers have received cost recovery certificates. If the hoteliers are nevertheless asked to pay the bill, they should refer to the statement and contact FTI. Should they insist on the demand, it is important to remain calm, keep the receipts and submit them.
“Our protective shield is in place. We have a strong capital base. This is by far enough to settle the claim,” Arnaout stressed once again. According to him, it is important to ensure that visitors can conclude their holiday in peace. He assumes that the majority of guests will be able to continue their journey. “We have only brought back a few groups from more exotic countries,” he noted.
The two DRSF directors were unable to answer the question of when clients who were unable to travel would receive their money back. Mr. Arnaout explained that checking the claims is time-consuming and depends on the quality of the data. Nevertheless, Mr Fiebig urged towards speeding up: ‘You realise that the reputation of our industry and the confidence of customers depends to a large extent on how quickly we act,’ he said. He added: “Every effort must be made to ensure that customers get their money back soon. Not everyone has enough money in their pocket to fund a second holiday.”
Lost supplies
Asked if they should cancel trips themselves, Mr. Mees answered with a resounding “no.” “If you do that, it changes your legal relationship and your claims. You have to keep the booking. That is the only way to get your paid services returned to you,” he stressed.
DRSF CEOs also commented on the issue of lost commissions. “In my opinion, commissions have been earned. The insolvency should be considered as a subsequent event,” they said. The travel agencies, they said, would have to reclaim their claims from FTI. However, they will enter the bankruptcy estate, so they should not expect high recoveries.
Due to the high demand for information, the DRV president announced that more webinars will be organized as needed. In closing, he again addressed the participating travel agencies, saying: “We know very well what you do and how difficult everything is. But I also know how well you have managed such crises in the past.”
