Teletext Holidays and sister firm, Alpharooms, go bust after admitting it cannot pay refunds with both cancelling all existing reservations
- Teletext Holidays and Alpharooms have gone bust
- Neither company is accepting new bookings after the news
- It comes as both firms face court action after failing to pay refunds
Truly Travel, which owns both Teletext Holidays and Alpharooms, have ceased trading and are in the process of appointing liquidators, as they cannot meet payments to non-travel creditors.
As a result their membership with Travel Trust Association has been revoked and both firms have stopped taking new bookings while Alpharooms is also unable to fulfil any existing reservations.
It comes after the firms face court action after failing to return refunds to some of its package holiday customers who had trips cancelled during the pandemic.
The Competition and Markets Authority ordered both to pay back customers after many said they were still awaiting refunds and it requested a court order after they failed to do so.
Teletext Holiday and Alpharooms are not taking new bookings after failing to offer refunds
Both companies have now had their membership with Travel Trust Association, a trade body, closed as of 29 October with no reason given for the change.
Both websites reveal that customers with existing Teletext Holiday bookings will have their holidays honoured although they have now have been re-contracted with TTA Travel.
However, those with existing Alpharooms bookings will not be fulfilled and customers will have to fill out a form to claim a refund.
Travel Trust Association has not confirmed why the move has taken place but as both firms have faced scrutiny over refunds, it may be to do with this.
This is Money heard from hundreds of people who were frustrated about not receiving their funds, some of which were waiting for thousands of pounds.
Truly Holidays formally agreed in May to address failures to issue timely refunds after thousands of Teletext customers complained they had not received their money back.
However, after reviewing Truly Holdings’ final report on progress with repayments, the CMA wrote to the firm on 16 September stating it would take the company to court unless it took urgent action to improve how it handles refunds to package holiday customers.
Last month, the regulator said it does not consider that Truly Holdings has done enough to provide refunds to package holiday customers with outstanding claims, including recent cancellations, or to make sure that it pays all future refunds that are due within the 14 days.
Teletext Holidays put this notice on their website to say it is no longer taking new bookings
Alpharooms added that it was not taking new bookings and couldn’t fulfil existing ones either
As a result, the CMA will be asking the court to order that Truly Holdings puts in place appropriate processes to ensure it complies with the law in the future.
It added that as it considers Truly Holdings is in breach of the law and that harm to consumers is ongoing, it is seeking that the claim be expedited, so that the case can be heard more quickly.
However, it is for the court to determine a date for the hearing.
This is Money has contacted Teletext Holidays, Alpharooms and the CMA for comment.
Many customers of both Teletext and Alpharooms have taken to social media to vent their frustration.
Some customers have even claimed they turned up to their accommodation abroad to find their rooms had been cancelled by Alpharooms with no warning.
This customer said they booked their holiday with Teletext 3 weeks ago but had no more info
One Alpharooms customer was furious after his booking was cancelled with no warning
Another Teletext customer paid thousands for tickets but can no longer find the booking