A third travel company has gone out of business this summer with up to 500 people set to lose their holidays.
Mayo-based Ronane Travel, also known as Great Escapes, announced it had ceased trading with industry experts suggesting the rising cost of fuel was to blame.
The Commission for Aviation Regulation (CAR) moved quickly to assure the 489 customers currently abroad they will not be left stranded.
But up to 500 holidaymakers awaiting trips abroad were warned a refund is the best they can expect.
Cathal Guiomard, Aviation Regulator, said it was the first signs of trading difficulties for around three years.
“The cost of running the holiday is certainly substantially greater than the suppliers envisaged particularly because of fuel prices and a number of companies are running into serious difficulties and some of them are unable to continue,” he said.
Small tour operators are understood to be under pressure from fuel surcharges being imposed by charter aircraft companies.
Holidays booked at a certain price in the Spring were hit with additional fuel charges by airlines, forcing travel companies to cough up the extra amount.
All the firm’s customers are advised to contact CAR for a refund.
Flan Clune, of the Irish Tour Operators Federation (ITOF) which represents nine large tour operators, said its members had no immediate plans to pass levies onto customers.
“Tour operators are sticking to the brochure prices issued at the start of the summer so that’s what you will get your holiday for,” he said.
However, he did not rule out the possibility of surcharges being included in the price of holidays in the future.
“Winter brochures are already out and there are no plans at the moment to charge the customer for fuel surcharges, but it’s such a volatile market,” he said.
“The airlines are imposing the fuel surcharges and that’s just a fact of life now.”
CAR said arrangements were being made to fly home 489 passengers who travelled to Spain, Portugal and Greece with Ronane Travel/Great Escapes in the last fortnight.
The closure is the third to hit the industry this year after tour operator Fáilte Ireland and travel agent McLaverty both went out of business earlier this summer.
The Commission said replacement flights have been organised for 79 passengers due to fly from Faro to Knock tomorrow.
It also said it was finalising flights for 269 people into the West of Ireland airport on Friday from Reus in Spain and Lanzarote. A third flight for 141 people from Heraklion in Crete is expected to be arranged for early next week.
“As far as the passengers on holiday now are concerned there should not be any problems,” said a CAR spokesman.
“If they turn up at the airports with their tickets they should be accommodated on a flight.”
Despite the three holiday firms going out of business, Mr Clune said the year so far had been a good one for tour operators despite increasing costs.
“Business is up 5 per cent this year so we’ll see how it goes,” he added.
“It has been a difficult year but fuel surcharges, I don’t think, are an issue.”
Simon Nugent, chief executive of the Irish Travel Agents’ Association (ITAA), said holiday sales were good despite rising costs and the economic slowdown.
“The number of movements out of Ireland is marginally up by about two to three per cent on last year and sales have been steady.”
PA