FTI Tells Greek Hoteliers: Insurance Fund to Cover Customers in Greece

Photo source: FTI Group

The bankruptcy this week of FTI Touristik GmbH, Europe’s third-largest tour operator, appears to have a limited impact on Greece and particularly Crete and Rhodes after the company said costs for affected travelers would be covered by the German Travel Protection Fund DRSF.

In a letter to hotel partners, the company said that “the guests being booked in your hotel as part of a travel package will be covered by an insurance fund” and that “each guest will be covered by a cover letter respectively billing instruction issued by DRSF”.

The letter goes on to say that “in cooperation with the DRSF we will endeavor to ensure that our guests can complete their trip as planned”.

Some 7,500 FTI customers are currently vacationing in Greece of which approximately 70 percent who have booked holidays on Crete and Rhodes, 20 percent on Corfu and Kos, and 10 percent at other Greek destinations.

In an interview to ERTnews, the president of the Association of Cretan Travel & Tourism Agencies (ACTTA) Michalis Vlatakis said he estimates damages will not exceed 2 million euros for the island’s hotels. “Our priority he said is to ensure that the 4,000 or so tourists who booked through the company currently on Crete to complete their holidays and depart with the nest impressions,” he said.

FTI has opened a hotline [+49 (0) 89 / 710 45 14 98] and a website for affected customers.

Vassilikos: Consumers and hoteliers must be protected

Hellenic Chamber of Hotels President Alexandros Vassilikos.

Referring to FTI’s bankruptcy and both the rights of consumers and hoteliers, Hellenic Chamber of Hotels President Alexandros Vassilikos called for the immediate establishment of a European legislative umbrella.

“This will allow member states to intervene by protecting the rights of consumers – visitors as well as hoteliers,” he said in a statement to the media.

Commenting further on FTI’s bankruptcy, Vassilikos said that once again it has been proven that tourism is not a sector where professionals should be over-optimistic or complacent.

“From one moment to the next many facts can be overturned,” he said, adding that the main concern now is that FTI’s customers who are guests in Greece and should experience warm Greek hospitality.

“However, dealing with such problems cannot always be left solely to the philanthropy of hoteliers, who also suffer financial losses,” he stressed.

The Hellenic Chamber of Hotels is in contact with the Tourism Ministry and the government to explore how the financial losses for its member hoteliers can be mitigated.

Approximately 11,000 people worldwide work for FTI which offers travels services to over 40 destinations worldwide through its 10,000 partner agencies in Germany.