XL Leisure Group went bust: Your questions answered
What was XL Leisure Group?
XL Leisure Group was a British tour operator and airline that operated between 1995 and 2008. It provided package holidays to destinations across Europe, the Middle East, and North Africa.
Why did XL Leisure Group go bust?
In 2008, XL Leisure Group faced financial difficulties due to the rising fuel prices and a decrease in demand for its services. The company was unable to secure additional funding and went into administration on September 12, 2008.
What happened to XL Leisure Group customers?
Customers who had booked holidays with XL Leisure Group were left stranded as the company went bust. The UK government organized a massive repatriation effort to bring over 85,000 passengers back home from their holiday destinations. Many customers were able to claim refunds for their canceled trips through their travel insurance or credit card providers.
What happened to XL Leisure Group employees?
Over 2,500 employees of XL Leisure Group lost their jobs when the company went into administration. The UK government provided financial assistance to support the employees through the Redundancy Payments Service.
What lessons can we learn from XL Leisure Group’s collapse?
The collapse of XL Leisure Group highlights the importance of financial stability and contingency plans in the tourism industry. Tour operators must be prepared for sudden changes in demand and rising costs to ensure the longevity of their business. Customers should also ensure they have adequate travel insurance and consider booking with reputable tour operators.
The collapse of XL Leisure Group was a significant event in the tourism industry, affecting thousands of customers and employees. It highlights the importance of financial stability and contingency plans both for tour operators and customers. The industry has learned valuable lessons from the collapse of XL Leisure Group, and it’s essential to apply those lessons to prevent similar situations from happening in the future.