Running out of liquidity: Smaller and medium-sized German tour companies are facing insolvency.
The German travel trade is suffering heavily from the corona crisis. Booking cancellations and disappearing hopes for a voucher scheme to prevent large-scale customer repayments force tour operators to file for bankruptcy. But a lot of travel agencies are affected, too.
As many as two tourism companies in three now fear they are threatened by insolvency, reported the German Travel Industry Association (DRV) which carried out a survey of 500 members between April 21 and 24. Among the first victims of the corona crisis are small and medium-sized tour operators.
Already in April, Colibri Travel
had to strike the flag. The Berlin-based tour operator specialized in nature trips and wildlife watching was founded in 1995. Now managing director Thomas Gehlen sees no perspective to continue operation anymore.
based in Lutherstadt Wittenberg also had to file for insolvency. The company with its tour operator brand Asiamar and 22 members of staff was specialized in taylor-made trips to Asia. Another destination specialist which has to give up is Trails Natur- und Erlebnisreisen. Founded in Kempten in 1987, Trails organized trips primarily to North America. Now 500 customers have to wait for their repayments.
Doom and gloom for travel agents
And there's more bad news to come: According to a recent estimation of the small independent agents association ASR more than half of all German travel agencies are facing insolvency. One prominent victim is Reisebüro Honold Lufthansa City Center (LCC) in Neu-Ulm: The Bavarian travel agency employs 40 members of staff in its five branch offices in Neu-Ulm, Ulm, Heidenheim, Giengen and Kempten.