Another travel agency went bankrupt

By: Trademagazin Date: 2024. 06. 04. 11:09

FTI travel group, Europe’s third largest tour operator, has filed for insolvency, which is having a serious impact on the group’s wider operations. The bankruptcy affects FTI Touristik GmbH and several of its other brands, including Germany’s 5vorFlug, BigXtra Touristik GmbH, and the car rental services DriveFTI and Cars and Camper in Germany, Austria and the Netherlands.

The group, which employs around 11,000 employees, found itself in a difficult situation during the coronavirus epidemic. Although the company’s financial situation seemed to improve in the 2022/23 financial year – sales increased by 10 percent to 4.1 billion euros and the results reached the double-digit million range – the number of reservations fell short of expectations. This situation did not improve significantly even with the positive news that predicted the entry of a possible investor.

The news of the bankruptcy raises serious concerns in the travel industry, especially in the current economic situation, when the tourism sector is still trying to recover from the crises caused by the epidemic. The case of FTI highlights how vulnerable the financial structure of a large travel organization can be behind the stable appearance.