Travellers facing uncertainty following collapse of STA Travel

The South African branch, STA Travel South Africa, closed shop on Monday, informing customers of the move via social media.

Picture: 123rf.com

CAPE TOWN - Travellers across the globe are now facing uncertainty following the collapse of STA Travel.

The South African branch, STA Travel South Africa, closed shop on Monday, informing customers of the move via social media.

But it seems that the writing was already on the wall last week.

South African travellers were stunned yesterday by the sudden closure of STA Travel South Africa but was it really a surprise?

On Friday, STA Travel UK announced that it would be closing it's 50 stores with immediate effect.

The announcement had the same wording as the South African announcement.

Earlier last week, STA Travel's parent company STA Travel Holding AG filed for insolvency.

Should STA Travel SA file for liquidation, consumers will be the last to get a payout says the National Consumer Commission's director of prosecution, Joseph Selolo.

"They are the very last one because you still have the costs of the sequestration plus amounts for the liquidators, statutory obligations, salaries for employees, so ordinary people that paid any travel funds, they rank very low."

The COVID-19 pandemic has had a catastrophic effect on the travel sector, with the local industry reportedly loosing R50 billion in revenue generation in June.

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