Travel Agents

STA Travel files for insolvency

Ali Coulton

Ali Coulton

The global pandemic has signalled the end for another travel company, with STA Travel unable to pay its bills.

The youth travel advisor has filed for insolvency, advising in a statement that an external administrator will be taking over in the next few days to determine the next steps.

While the parent company STA Travel Holding AG in Switzerland is affected, the company advised local day-to-day operations by STA Travel may continue around the world.

“The global magnitude of the pandemic crisis has brought the travel industry to a standstill, including STA Travel, a student and youth travel company,” the company said.

“Over recent months, the company took decisive measures to secure the business beyond COVID-19.

“However, sales have not picked up as anticipated, due to consumer uncertainties, further restrictions and renewed lock-down measures, which are expected to largely continue into 2021.

“STA Travel Holding AG very much regrets to not have been able to secure the future of the business under these unprecedented circumstances.”

In may, STA Travel was named in a potential class action over voucher schemes that “significantly disadvantage customers” who suffered from trip cancellations as a result of COVID-19.

In April, the company was also hit with $14 million in penalties over misleading ads about its multiflex pass product.

STA Travel is not the first company to collapse under the pressure of the global pandemic.

Virgin Australia entered voluntary administration in April, but is expected to be bought by Bain Capital, with the second creditors meeting scheduled for 4 September.

Cruise and Maritime Voyages and Air Mauritius have also entered into administration.


Featured image source: iStock/jax10289

SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Cruise

13 Parties charged over last December’s White Island tragedy

by Ali Coulton

The eruption resulted in 22 deaths with many still recovering from the traumatic event that occurred during a cruise ship excursion on the New Zealand Island last year.

Share

CommentComments

Hotels

Property owner scores early wins against Virgin Hotels, as lawsuit proceeds to trial

A juicy court case between Virgin Group’s hospitality arm and a disgruntled hotel owner has seen the latter chalk up a couple of early wins.

Share

CommentComments

Aviation

Joyce meets with Victorian Premier over Qantas’ potential HQ move, as thousands more jobs get the chop

Qantas’ chief has taken a spin around Melbourne’s Airport prescient to see if it fits the bill as the airline’s new headquarters, just before another big job cut announcement.

Share

CommentComments

Wholesalers

Excite Holidays payout to creditors estimated to be more than previously thought

by Huntley Mitchell

Were you one of the unfortunate ones caught up in the wholesaler’s collapse earlier this year? Consider this a ‘must read’.

Share

CommentComments

Travel Agents

Helloworld CEO expects “dramatically reduced” competition will lead to boom time for agencies

by Huntley Mitchell

Andrew Burnes has some seriously good expectations for Helloworld agents, thanks to a predicted lack of competition from rivals.

Share

CommentComments

Destinations

Visit Sunshine Coast unveils new brand tagline

It’s getting a new CEO, and now Visit Sunshine Coast has a new tagline, too. Rumour has it that the office biscuit tin is next in line for a shakeup.

Share

CommentComments

Tourism

REVEALED: All the winners of the World Travel Awards 2020

Find out the top destinations, hotels and airlines to book your clients with post-COVID right here.

Share

CommentComments

Aviation

British Airways is flogging its onboard dining sets and bar carts just in time for Chrissy

Unlike Qantas, British Airways is selling its bar carts empty, which leads us to believe it may have missed the point as to why passengers get excited when the bar cart comes around.

Share

CommentComments

Cruise

CLIA calls for cruise ban to be replaced by newly proposed measures

The association has been busy making sure the government sticks to its plan of lifting the cruise ban by 17 December by suggesting a range of safety measures.

Share

CommentComments

Wholesalers

Intrepid launches cyber sale on 2021 Aussie and New Zealand trips

Slide into your clients’ DMs with these whopping savings, so you can get their 2021 bookings in before the silly season is well and truly upon us.

Share

CommentComments

Destinations

South Australia set to open its border to Victorians

It looks like ScoMo’s plan for domestic borders to be open by Chrissy is well on track, with the crow-eaters finally letting those from the Garden State back over their side of the fence.

Share

CommentComments

Destinations

Rob Thompson named Tourism Fiji’s acting CEO

While the search for Tourism Fiji’s next leader is well underway, the organisation has revealed who will be keeping the CEO’s seat warm.

Share

CommentComments