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Insolvency of Lowcostholidays and Hoteling

Tips for affected consumers

Many consumers contact ECC Austria with questions regarding the company Lowcostholidays Spain S.L. It is operating the websites „Lowcostholidays.com“ und „Hoteling.com“ where you can book e.g. hotels or flights.

A few days ago, it became public that the travel agent declared insolvency. Unfortunately, the current situation is confusing. ECC Austria did some research.

Insolvency proceedings

The company Lowcostholidays Spain S.L. points out a decision of the High Court London that states that the insolvency administrator was commissioned in UK. This indicates that the insolvency proceedings will be handled in the UK and not in Spain where the company is situated as well. However, distinct information on whether insolvency proceedings will happen at all and if so, where and until when claims have to be lodged, are not yet available. ECC Austria recommends that you regularly visit the websites "Lowcostholidays.com" and "Hoteling.com" for updates.

Advice of ECC Austria

When it comes to sole hotel bookings (unlike package travel), many consumers already paid the price for the accommodation to the travel agent, but the money was never forwarded to the hotels.

If this is the case, a refund can't be requested from the hotel. ECC Austria recommends to take the following steps:

  • Hotel/flight/transfer: Depending on the service you booked via the website, contact the respective company (airline, hotel etc.) and ask if they can confirm your booking and whether they got the payment from LowCostHolidays.
  • Credit card payment: If they didn't forward your money, you should ask your credit card company for a chargeback. Consumers reported that the credit card companies were able to get the money back when there was evidence that the booked service was paid for but never actually used. A chargeback is an amicable solution, you are not legally entitled to it!
  • Bank transfer: If you paid via bank transfer, a chargeback is not possible.
  • Insurance: If you're payment was never forwarded to the respective company and you can't get the money back, ask your insurance company (travel insurance, insurance of your credit card, etc.) if they would cover the damage.
  • Insolvency proceedings: If all the above mentioned steps are not possible, you can only lodge your claim at the official insolvency proceedings. ECC Austria therefore recommends to regularly check the websites of the company LowCostHolidays for updates.

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