Tourism minister Biel Barceló is to face parliament next week about the Low Cost affair.

13-07-2015Joan Torres

The chaos caused by the collapse of the Low Cost Travel Group continues, with explanations from the Balearic government adding to the confusion. While it has been said that holidaymakers will face the possibility of having to pay hoteliers if the hoteliers hadn't been paid by Low Cost, the director-general for consumer affairs, Francesc Dalmau, has contradicted this. He says that hotels cannot charge tourists a second time and that they (the hotels) have to pursue claims against the collapsed company.

Dalmau cited Balearic and national law on consumer protection in asserting that the hotels cannot claim from guests. He added that tourists can also count on the European Consumer Centres network "to which all claims go" but has not said anything about payments that have been demanded by hotels and indeed paid. That he made his announcement a week after Low Cost went bust is something to be added to the list of questions to be asked about the government's handling of the affair.

He explained that there isn't yet accurate information as to how many claims have been made against Low Cost, adding that the tourism ministry is now channelling claims so that they can be resolved. He pointed out that there had been problems with claims because information on the Low Cost website was directing people to the government's website - - rather than specifically to the tourism ministry. This has resulted in emails being sent to various divisions of government, such as the ministry for transparency.


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SteveRiches / Hace over 5 years

It's easy to be wise after an event but when you analyse what the company did, they were able to avoid proper payments toward bodies which normally guarantee a customer's holiday even if a firm folds up (ABTA etc.) and you can't tell me that a substantial number of official people were not aware of the higher possibility of failure but were happy to trade that worry against the seeming plus of employment locally for many people, who as it happens have now sadly lost their jobs. Secure financial bonding should have been a pre-requisite of their trading from here. It's a bit like the BHS mess, fairly clear to see it happening but almost impossible to stop it due to inadequate laws.


Brian Challis / Hace over 5 years

Thank you Anne. As we have less than 4 weeks until we travel, any alternative accommodation would also be charging a premium. We spent a long time choosing the apartment due to its quiet location and we also have flights, cad hire and activities pre-booked therefore cancellation was not an option. We have been holidaying on the island for 17 years and this will be only the second time we have booked via an agent; we usually rent privately. Low Cost Holidays were offering such a good price for the accommodation that we were able to come to Mallorca in August rather than take our children out of school. What would one give for the gift of foresight?


Anne Keen / Hace over 5 years

Brian, I think it means that the apartment owner will have to pursue Low Cost for their money. You also will have to pursue them for yours, as you have paid for something you are not going to get. The apartment owner now had an unbooked property which he will be eager to rent out asap. He's s cheeky thing offering it to you at a higher price! He is hoping to get paid twice for the same letting! Once from you and possibly from the administration of Low Cost. Of course the apartment is available - he was expecting you to be in it. I would think very carefully about his offer. You may have to write your money off but it seems this owner is trying to rip you off.


Brian Challis / Hace over 5 years

Confused!! The owner of the apartments where I am staying with my family next month has told me my apartment is cancelled. I called him and he said I can still have the apartment but pay him locally and at a higher rate. Does this latest announcement mean he has to honour my original booking through low cost and I will not have to pay again??