Travel compensation fund won’t pay for another firm collapse

The high scale of the closure of Lowcostholidays last year would “dissipate” a compensation fund in place in Ireland in the event of another travel company collapse, the Irish Travel Agents Association (ITAA) said yesterday.

Nearly 4,200 Irish people received compensation of €3.8m after Lowcostholidays.ie — a subsidiary of a Spanish company — went out of business last summer.

The payouts came following claims submitted to the Commission for Aviation Regulation which bonds companies selling holidays in Ireland. The Irish division of Lowcostholidays was, however, bonded for just €79,243, according to the ITAA.