An annual report published by the Commission for Aviation Regulation, which oversees airlines, travel agents and tour operators, has revealed that it paid out €3.34 million in compensation to the almost 4,000 Irish residents who were affected by the collapse of Lowcostholidays last year.
According to The Irish Times, this figure exceeded the bond provided by the travel agent, meaning that the commission had to tap into its Travellers' Protection Fund to cover the cost of the claims. As a result, the CAR is planning to reassess its current customer protection scheme, under which all travel agents and tour operators are obligated to supply bonds.
A representative for the commission commented, "We will determine if this scheme continues to meet the objective of ensuring consumers are protected in the event of future collapses. We will also consider the extent to which this scheme meets the requirements of a new EU package travel directive which needs to applied from July 2018."