What happens to the Thomas Cook hotels?

longwalks1

we stay in Greece every year, at a mainly Thomas Cook booked hotel (we book direct though through the hotel owner), he has always moaned the TC took 3 or 6 months to pay him, after the guests had stayed. Think this is why he preferred direct bookings from his regular guests.


What happens with the money he is owed by TC? I'm assuming it will be many thousands?


Just dawned on me of his possiblt issue too, is he covered in any way?



PS - Sorry to all those who lost their jobs and holidays after todays announcement

Alan_Bowen

Greek hoteliers are notorious for losing money when operators don't pay them and anyone owed money has I am afraid no realistic prospects of seeing a penny. Its debts before collapse were £1.6 billion, those who have no security have lost the lot.

davelewis

He's unlikely to get paid I'm afraid. He is now a creditor of an insolvent company and will join the list of creditors who want to be paid. Thomas Cook had large debts and there is unlikey to be funds to pay the creditors. A very sad way for an iconic travel company to end. Thoughts with the staff and customer and indeed the suppliers.

jackieblack

I assumed the same as the above, but I’m sure I read something earlier that said all the hoteliers who had supplied rooms already would get paid...

ETA: found it!
“Hoteliers will be paid via the Atol scheme, so they should not ask for any extra payment from holidaymakers.”
https://www.bbc.co.uk/news/business-49768687

Presumably this applies to rooms already supplied, just not future (now cancelled) bookings.

Westin

It is sadly as Alan Bowen and davelewis have indicated. There will be many very badly hit hoteliers and ground handlers who are unlikely to see any money paid to them. Some may also not have been paid for months.

I fear that with a collapse of this size and magnitude that this is, it will have a negative impact on many overseas suppliers who had Thomas Cook as a main, or even exclusive client. We may even see some hotel groups fail.

Jackieblack - I think you may possibly be confused with the CAA announcement. Past hotel bookings unpaid by TC will be unlikely to be paid. The CAA, via the ATOL scheme, are guaranteeing payment to hoteliers from the failure date until guests leave at the end of their holiday. This enables many overseas to continue to (hopefully) enjoy the rest of their holiday, many returning to the U.K. on the same day as originally planned and booked. This link covers it - https://thomascook.caa.co.uk/trade-information/suppliers/

jackieblack

Westin wrote: »

Jackieblack - I think you may possibly be confused with the CAA announcement. Past hotel bookings unpaid by TC will be unlikely to be paid. The CAA, via the ATOL scheme, are guaranteeing payment to hoteliers from the failure date until guests leave at the end of their holiday. This enables many overseas to continue to (hopefully) enjoy the rest of their holiday, many returning to the U.K. on the same day as originally planned and booked. This link covers it - https://thomascook.caa.co.uk/trade-information/suppliers/

Yes, that makes sense - I was surprised when I read it and felt that it didn’t sound quite right

longwalks1

Thanks everyone, I had no idea.., very very sad times. It’s disgusting how these vastly overpaid CEO’s can still be earning so much right up to total collapse when they clearly knew about things many months ago

Criminal