Lowcosttravelgroup Has Stopped Doing Business

7/18/2016

The Spanish travel company Lowcosttravelgroup - also known as Lowcostholiday - has stopped doing business and consumers are warned that they may be forced to pay for both hotel and flight tickets once again.

UPDATE 2016-09-16: This article have been updated with a complaint form regarding travellers warranty for package holidays booked with Lowcostholiday.

UPDATE 2016-07-17: This article concerns Hoteling.com, Lowcosttravelgroup, Lowcostbeds.com, Lowcostaviation.com and Lowcostholidays.

If you are on holiday and your trip is booked via Lowcosttravelgroup, the company has promised that there will be no additional costs in connection with your return flight, and that you will be able to return home as planned.

If you have booked a flight ticket, not yet received, you should contact the airline to see if they have received your payment. If you have already received your tickets, they will still be valid.

If you have booked a hotel via Lowcosttravelgroup you will probably have to pay the hotel once again when you are there. Lowcosttravelgroup has, in previous general agreements, stated that they are merely a booking agent, and that the agreement is between consumer and accommodation supplier. If the supplier has not been paid by Lowcosttravelgroup, you may have to pay for the accommodation, in order to be able to stay at the hotel.

If you have additional costs

If you have additional costs due to the situation stated above, you can file a complaint against the company. However, if the company goes bankrupt there is a risk that you will not get a refund. It is important that you save all of the receipts if you want to claim a refund or compensation.

How to try to get a refund

  • If you have used a debit or credit card when booking the trip, there is a possibility to get compensation through chargeback. According to the Consumer Credit Act, you can turn to your bank with the same claim as to the trader, if you have paid with a credit card. If you have used a debit card, the bank's liability is determined in the card agreement. Read more about compensation through chargeback.

  • Check if your travel or home insurance covers the additional costs.

  • If you have booked a package holiday where the company name Lowcostholiday occurs in the agreement, you may be entitled to request a travellers warranty by sending in a complaint form. Note that the travellers warranty applies to package holidays only - and not if you booked your flight or accommodation separately.

    Complaint form (pdf)
    Example of how to fill in complaint form (pdf)

    Send the form to:
    Dirección General de Turismo
    C/ de Montenegro, 5
    E-07012 Palma
    Illes Balears
    Spain

    Remember that the complaint form must be filled out in Spanish or Catalan and it is important that you attach all the receipts you want compensation for.

    This warranty pays a maximum amount, for all affected consumers, therefore, the Spanish authorities recommends that those who can be compensated in some other way use that possibility. Find more information on the travellers warranty in Spanish and in English on the Institution's website.

  • File your complaint against the trader to the administrators Smith and Williamson, via their e-mail address lowcosttravelspain@smith.williamson.co.uk.

More information