There’s bad news just ahead of the summer season.
On Monday, the FTI Group, which describes itself as Europe’s third-biggest tour operator, said parent company FTI Touristik GmbH, was filing an application for the opening of insolvency proceedings at a court in Munich.
Who is affected by FT’s announcement?
Tens of thousands of customers may be affected.
A notice on the FTI Group’s site said that from Tuesday June 4th the group would likely no longer be able to operate trips that have not yet begun, or they may only be able to offer a partial service.
“We are currently working at full speed to ensure that the trips that have already started can be completed as planned,” the group said, adding that initially only the tour operator brand FTI Touristik is directly affected by the insolvency application, but other brands could follow.
The notice continued: “In general, all services booked with the travel provider FTI Touristik GmbH are affected. This includes the FTI brands in Germany, Austria and the Netherlands, the 5vorFlug brand in Germany, BigXtra Touristik GmbH, and the car hire brands DriveFTI and Cars and Campers.
“The affected services could be booked in retail travel agencies, on online booking platforms such as Sonnenklar.tv, Check24, Ab-In-den-Urlaub, HolidayCheck, etc. or on our own booking platforms.”
Bookings made with FTI for other providers, such as TUI or DER Touristik, are likely not affected.
Where can customers get information?
Travellers who need support or information should contact the providers’ customer hotlines or the German Travel Security Fund (DRSF).
A free hotline has been set up by the DRSF for those affected by the FTI situation. People can call +49 (0) 89 710 45 14 98 or visit the website.
However, keep in mind that services are currently very busy due to the increase in inquiries.
Holidaymakers already abroad shouldn’t get stranded at airports. The travel security fund, which is organised by the German tourism industry and supervised by the Justice Ministry, was set up following the insolvency of travel group Thomas Cook in September 2019.
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At the time, insurance firms had only reimbursed a fraction of the costs due to a limitation of liability so the state stepped in with millions, promising to work with the insolvent tour operator to find a solution – at least for all package holidaymakers.
It means that compensation for package holidays – and return travel if needed – are covered in Germany.
FTI also pledged not to leave individual travellers, who are currently on a trip, without a solution. “We are currently checking whether they can still make use of the services they have booked and will contact them shortly,” says the company.
A flight near Frankfurt airport. Photo: picture alliance/dpa | Boris Roessler
What else should I know about package holidays?
Package tours involving the operators FTI, 5vorFlug or BigXtra with departure dates from Monday, 3rd to Wednesday June 5th have been cancelled.
According to FTI, the group is legally obliged to cancel these services. Compensation for holidays already paid for will be compensated by the DFRS.
For package holidays with departure from Thursday June 6th, customers should check the status of their trip. If it is cancelled or partially cancelled, the DFRS should cover compensation.
“From now on, you can submit your claim for reimbursement via the DRSF online portal,” says the FTI Group. “After confirming your eligibility, you will receive a full refund of your deposit from the DRSF.”
Individual hotel bookings are not covered by the security fund.
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What is the difference between a package holiday and an individual booking?
A package holiday consists of at least a flight and accommodation, which are booked together as a package, sometimes with additional extras such as a hire car. If the accommodation, flight, hire car and other components are booked individually, the DFRS is not responsible.
“Trips that have already started should be completed as planned if possible,” said the group. “Unfortunately, individual services do not fall under the statutory insurance protection for package tours and are therefore not covered by the DRSF.
Customers affected by this situation should think about seeking advice from a travel or legal expert if they have any questions.
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Why did FTI file for insolvency?
The FTI Group came under pressure during the coronavirus pandemic. The company had to be supported with state funds and received a total of €595 million from the Economic Stabilisation Fund (WSF). According to media reports, FTI has so far only repaid a mid-double-digit million sum of this.
There had been talk of a takeover by a consortium led by the US financial investor Certares but this has fallen through.
“After a lengthy and complex investor process, the entry of a consortium of investors was announced in April 2024,” said the FTI Group in a press release.
“Since then, however, booking figures have fallen well short of expectations despite the positive news. In addition, numerous suppliers have insisted on advance payment. As a result, there was an increased need for liquidity, which could no longer be bridged until the closing of the investor process. The filing for insolvency has therefore become necessary for legal reasons.”
Meanwhile, staff will also be hit by the news. The Munich-based group has around 11,000 employees worldwide.
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