Travel companies have been in business for many years, offering customers a variety of travel services. From booking flights to arranging accommodations and activities, these companies provide travelers with an easy way to make their travel plans.
Unfortunately, not all travel companies are successful and some have gone out of business over the years.
One of the most notable recent examples is the collapse of Monarch Airlines in 2017. Monarch was a British airline based out of London that had been in operation since 1968. At its peak, it operated services from 18 airports across the United Kingdom and flew to over 100 destinations worldwide.
The airline experienced financial difficulty beginning in 2012 when it entered administration due to rising fuel costs and falling demand for its services. It was later purchased by Greybull Capital but continued to experience losses as competition intensified from budget airlines such as Ryanair and Easyjet.
Monarch eventually entered administration again in 2017 when it could no longer afford to pay its debts. This led to the closure of the company with all flights cancelled and 860 jobs lost.
Other Travel Companies That Went Out of Business
Monarch is not the only travel company that has gone out of business recently. In 2019, Thomas Cook collapsed after 178 years in operation due to increasing debts and competition from budget airlines. The closure resulted in 600 shops across the United Kingdom being shuttered, 21,000 job losses worldwide as well as an estimated 150,000 people stranded overseas.
Smaller travel companies have also been affected by economic downturns or changing customer demands. For example, German-based tour operator TUI had to close its doors in 2018 due to declining sales while British tour operator Shearings ceased trading in 2020 due to reduced customer demand caused by the pandemic.
Conclusion
The collapse of Monarch Airlines serves as a cautionary tale for other travel companies looking to stay afloat. As competition increases and economic conditions change, businesses must remain agile if they hope to survive. Unfortunately, not all travel companies will be able to do this and some will go out of business despite their best efforts.