What if a gift experience company collapses?

hcb42

my experience (which is in hospitality sales) is they will be a channel and there won't necessarily be a guarantee of volume even, more of an expectation of demand/market share i.e. what can I expect to sell by offering "afternoon tea" in London, in Manchester etc...similar to other on line "agencies"

mo786uk

I thought traditional voucher schemes worked on the basis that the voucher company PAID the service provider - so even if they went bust in theory it shouldn't matter.

It really would depend on how the particular company operated.

IMO you have a voucher from company A who did not pay the service provider and company A went bust then you woudl have to pursue them for your money back or accept the loss. The service provider has no liability as far as I can see.

hcb42

I would say they wouldnt - as they cannot pay the provider if there are 20-30 providers.

I agree, you would have to pursue the gift provider for money back or accept the loss..

if the experience provider had received the money in advance of course, there wouldnt be an issue, but this seems unlikely to me.

RadoJo

texranger wrote: »

No this is how it works

you have an experience day provider ( lets say paintball)

As as retailer you purchase say 30 paintball vouchers from them at say £20 per voucher. so you pay then £600 for the vouchers

you then list these on your site or in your shop say at £40. a customer purchases one of these for £40 and then the customer call the experience centre to arrange a date to use the voucher.

it is as simple as that

It is very rare that an experience provider would work like this. Generally the actual supplier invoices the gift experience company after the customer has taken their experience, and good companies put the customer's money into a separate account to cover any future problems. If you're concerned, you can ask the gift experience provider at the point of purchase and they can tell you.