Superbreak collapse: Why did it happen and what does it mean for consumers?

There are thought to be around 53,000 customers affected

After 36 years of providing short breaks, mostly in the UK, the Superbreak travel company has ceased trading.

The holiday plans for tens of thousands of British travellers are now in disarray.

These are the key questions and answers.

Who was Superbreak, and what went wrong?

Superbreak was created in 1983, packaging travel and accommodation for minibreaks in the UK. For many years it was profitable and well regarded, and expanded into Europe.

Along with many other travel firms, Superbreak found 2019 a difficult time for trading, with strong competition and significant consumer uncertainty.

Together with its sister company, LateRooms, it was part of Malvern Group – which got into difficulties following a loan default by Cox & Kings (a separate company from Cox & Kings Travel Ltd UK) and had been trying to find a buyer.

On the afternoon of 1 August, the company announced it was ceasing trading, adding: “Please note that the contact centre is no longer operational and therefore will not be available for further queries.”

Around 200 staff have lost their jobs.

Are there many people on holiday, and what happens to them?

An estimated 400 Superbreak customers are on holiday in the UK or overseas. They should continue with their trips and travel back as planned. The costs of domestic holidays will be covered by the Association of British Travel Agents (Abta) – except for hotel-only bookings. For this particular exception, the defunct company says: “We recommend that where you have paid by credit/debit card that you contact your bank/credit card provider.”

For those abroad with Atol protection, the Civil Aviation Authority (CAA) will cover the cost.

What about forward bookings?

There are thought to be 53,000 customers who have yet to take their Superbreak trips.

Anyone who has made a booking with a travel agent should contact the agent and ask for a refund or a suitable alternative trip.

For direct bookings of domestic holidays, the position as stated by Superbreak is: “As you had made a package booking with us, your break should be financially protected by Abta.”

For holidays abroad, Superbreak advises contacting the CAA, which administers the Atol scheme.

The CAA is offering most travellers the option to continue with their flight booking – for which payment has already been made – and make new hotel reservations, or ask for a full refund.

What is the status of Superbreak vouchers?

“Should you be in possession of a Superbreak gift voucher please note that these are no longer valid/accepted,” says the failed company.

“We recommend that where you have paid by credit/debit card that you contact your bank/credit card provider.”

In other cases, such as where vouchers have been paid as compensation, the holder is an unsecured creditor and should contact the administrators to see if there is any value to be recouped.

LateRooms also failed. What is the effect on customers?

No one should lose money. The business model of this 20-year-old firm, a sister company to Superbreak, is to connect travellers with their hotel, and for payments to be made directly; the property then paid a small commission to LateRooms.

“We recommend, however, that you contact your accommodation supplier directly prior to travelling to confirm,” the company said in a statement.