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26/11/09
ITAA Statement on closure of Budget Travel

The ITAA was sad to hear of the closure of the Tour Operating Company Budget Travel yesterday.  

ITAA CEO Simon Nugent said "While Budget was not a member of the Association, our thoughts are with our many friends and colleagues who worked in the company and who have now lost their jobs.

"Contrary to some media reports, we do not expect any holidaymakers to be "stranded" abroad.  Budget was a licensed and bonded travel company and we expect that the Government Regulator will make arrangements to bring customers home on schedule without any fuss.

"Similarly, we would expect the regulator, the Commission for Aviation Regulation, to be able to predict within a couple of days how quickly customers who have booked holidays in the coming months could expect to have their refund claims processed.

Commenting on the overall trend in the trade, Mr Nugent said that Budget Travel's business model which involved the company chartering airplanes and contracting with hotels many months in advance, left the company particularly vulnerable to the recent recession.  He pointed out that Travel Agents have a completely different business model which gives them much more fexibility to respond to shifting consumer requirements.  

"We would invite any consumer who has a forward booking with Budget to come and talk to an ITAA Travel Agent who will help them book an alternative trip and advise them on how to apply for a refund for the Budget booking.

For further information

Simon Nugent
Chief Executive, ITAA
01 6794179

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