Lowcostholidays

Lowcostholidays was a consumer-facing online travel brand operated by the lowcosttravelgroup. Founded in 2004 by travel-industry executive Paul Evans, the business developed around the sale of comparatively low-priced holidays, hotel accommodation, beach breaks and city breaks. Its principal customer proposition was convenience and value: travelers could search and book holidays online, with the brand emphasizing discounted accommodation and destination choice across European and international markets. The company began in the United Kingdom and initially had headquarters in East Grinstead, later moving to offices near Gatwick Airport in 2011. In November 2013, it transferred the core business to Palma de Mallorca, Spain, as part of a wider effort to centralize operations and simplify its corporate structure. The relocation was presented by management as a way to reduce duplication and operating costs, but it also changed the regulatory protection applicable to some UK bookings. The Civil Aviation Authority warned UK consumers in 2013 that bookings made through the Spanish structure were not covered by the UK's Air Travel Organiser's Licence scheme. Lowcostholidays maintained that customers were protected under a Spanish consumer-protection arrangement instead. The brand expanded beyond the UK through localized websites and operated in 13 markets. Its German website was described as the first international launch, followed by nine additional European websites. By 2014, the group had also opened offices in Atlanta and Sydney. At its height, approximately 500 people were associated with the brand, with operations centered in Palma and additional offices in London and Krakow. Lowcostholidays used a mix of performance marketing, television, outdoor advertising, social media and promotional products. Its campaigns included a single-parent holiday offer, a Secret Hotels programme selling discounted breaks without disclosing the hotel until later in the booking process, and destination-led advertising. The company also pursued playful social-media activity, including a free-holiday promotion involving people whose names resembled travel brands. It received industry recognition for its website, mobile experience and online travel proposition, including Travolution awards and inclusion in the Sunday Times Virgin Fast Track 100. The company failed in July 2016, entering administration on 15 July, shortly after the United Kingdom's referendum on membership of the European Union. The administrator, Smith & Williamson, reported that approximately 27,000 customers were already abroad and around 110,000 had future bookings. The collapse was attributed publicly to a difficult financial environment and weak turnover around the Brexit vote. The failure left customers dealing with different protection arrangements depending on where and how they had booked, and it became a prominent example of the risks associated with cross-border online travel businesses and changes in holiday-protection coverage.

Lowcostholidays was established in 2004 by Paul Evans, who had previously worked in the travel sector for companies including Saga Holidays, Airtours/MyTravel Group, First Choice and Holiday Hotels. The business was created as an online holiday seller with a low-price proposition and became a consumer brand of the wider lowcosttravelgroup. It concentrated on European city and beach destinations while also offering holidays and accommodation in international markets. The company's early UK base was in East Grinstead. In summer 2011, it moved to offices near Gatwick Airport, placing the operation closer to a major international transport hub and its principal UK customer base. The brand's digital model supported international expansion: its German website was the first overseas site, followed by nine more European sites. The company ultimately reported activity in 13 markets. Lowcostholidays developed a substantial marketing presence during the early 2010s. Its first television advertisement was launched in June 2011, followed by national bus advertising in 2012. Later campaigns used the line “Does what it says on the bus” and employed social-media promotions, user-generated content and destination advertising. In 2012, the brand offered a free holiday to a person using the name Thomas Cook after he said he had been unable to secure a holiday from the similarly named travel company. In 2013, a user-generated video from its Little Stars competition reportedly received more than 126,000 views. The brand also broadened its commercial offer. In June 2013 it introduced a single-parent holiday campaign with discounted rates at selected hotels for lone parents traveling with children. During the same month it launched Secret Hotels, allowing customers to buy cheaper beach holidays while withholding the hotel's identity until a later stage of the booking process. From late 2013 into 2014, the company worked with BETA on television advertising in the UK and Ireland, including short destination-focused spots before the summer season. A major structural change occurred in November 2013, when the business moved its main operations to Palma de Mallorca, Spain. Management said that centralizing the business in one trading entity would simplify the structure and create cost efficiencies. The relocation nevertheless generated regulatory concern in the United Kingdom. Because bookings were no longer made through a UK ATOL-protected structure, the Civil Aviation Authority warned consumers that they might not receive the same protection against being stranded abroad or losing the cost of a holiday if the company failed. Lowcostholidays responded that customers were protected by a Spanish scheme. International expansion continued in early 2014 with offices in Atlanta and Sydney. At its peak, the brand employed or supported a workforce of approximately 500 people, with its main base in Palma and further offices in London and Krakow. Its online proposition received industry recognition, including Travolution awards for its website and brand growth, a mobile-website award and recognition for the Irish online travel operation. The company also appeared twice in the Sunday Times Virgin Fast Track 100. Lowcostholidays collapsed on 15 July 2016 and entered administration. Smith & Williamson, acting as administrator, stated that around 27,000 customers were on holiday at the time and approximately 110,000 had booked trips for future departure. The failure followed the United Kingdom's Brexit referendum and was publicly associated with weak turnover and a turbulent financial environment. The company's collapse, occurring shortly after a television advertisement and a major social-media sale, drew attention to the financial and consumer-protection risks of cross-border online travel businesses. The brand is now defunct.

• 2016

  Administration and collapse

  [1]Lowcostholidaysen.wikipedia.org

  Lowcostholidays enters administration on 15 July, ending the operation of the brand.

• 2014

  International office expansion

  [1]Lowcostholidaysen.wikipedia.org

  Lowcostholidays opens offices in Atlanta and Sydney as it continues international expansion.

• 2013

  Move to Palma de Mallorca

  [1]Lowcostholidaysen.wikipedia.org

  The brand relocates its principal business to Spain and centralizes its trading structure in Palma de Mallorca.

• 2013

  Single Parent Holidays and Secret Hotels launch

  [1]Lowcostholidaysen.wikipedia.org

  The company introduces a single-parent offer and a discounted undisclosed-hotel programme.

• 2011

  Move near Gatwick and first television advertising

  [1]Lowcostholidaysen.wikipedia.org

  The business moves from East Grinstead to offices near Gatwick Airport and launches its first television advertisement.

• 2009

  Travolution website award

  [1]Lowcostholidaysen.wikipedia.org

  Lowcostholidays is named Best Tour Operator-Agent Website at the Travolution Awards.

• 2004

  Lowcostholidays is founded

  [1]Lowcostholidaysen.wikipedia.org

  Paul Evans establishes the online holiday business that becomes the Lowcostholidays brand.

A value-oriented online travel agency focused on discounted holidays, accommodation and flexible destination-led offers.

• Travel packages · 2004

  Package holidays

  The core offer consisted of bookable holidays combining accommodation and travel arrangements, primarily aimed at customers seeking lower-cost European city and beach breaks. The online model enabled customers in several national markets to search and purchase holiday packages through localized websites.

• Accommodation · 2004

  Hotel accommodation

  Lowcostholidays sold hotel stays and accommodation as part of its wider online travel catalogue. Its accommodation proposition supported both conventional destination searches and promotional products designed to emphasize discounted rates.

• Discount travel offer · 2013

  Secret Hotels

  Secret Hotels allowed customers to access cheaper beach-break pricing by booking without being told the hotel's identity at the initial point of sale. The offer traded some certainty about the property for a lower price and was launched as a promotional programme in June 2013.

• Family travel offer · 2013

  Single Parent Holidays

  This campaign offered lone parents reduced rates at selected hotels when traveling with children. It was designed to address the price sensitivity of single-parent households and formed part of the brand's targeted promotional activity in 2013.

• 2016

  Collapse and customer disruption

  The company's entry into administration left tens of thousands of travelers abroad and many more with future bookings. The collapse raised concerns about the adequacy and practical operation of cross-border holiday protection.

  Source

• 2013

  Regulatory warning over ATOL protection

  The Civil Aviation Authority warned UK holidaymakers that the relocation of the business to Spain meant bookings were no longer protected by the UK's ATOL scheme. Lowcostholidays said customers were covered by a Spanish protection arrangement instead.

  Source

Read more

• 2013Little Stars

  United Kingdom · Ireland

  The brand invited social-media followers to submit user-generated content, which was assembled into a YouTube advertisement.

  Outcome. The resulting video reportedly generated more than 126,000 views.

  Source
• 2013Does what it says on the bus

  United Kingdom

  A later outdoor campaign adapted the earlier bus concept and used a message linking the advertising medium to the straightforward low-cost positioning.

  Outcome. The campaign extended the brand's national outdoor presence.

  Source
• 2013Single Parent Holidays

  United Kingdom · European markets

  Lowcostholidays promoted cheaper selected-hotel rates for single parents traveling with children.

  Outcome. The offer became one of the brand's targeted value propositions.

  Source
• 2013Secret Hotels

  United Kingdom · European markets

  The campaign marketed discounted beach breaks where the customer's hotel was not disclosed at the beginning of the booking process.

  Outcome. The programme added a price-led, productized promotion to the company's holiday range.

  Source
• 2013BETA television advertising partnership

  United Kingdom · Ireland

  Lowcostholidays partnered with BETA on a series of television advertisements beginning in late 2013 and continuing into early 2014.

  Outcome. Short destination-focused advertisements ran ahead of the summer holiday season.

  Source
• 2012I bet you can't guess what we do

  United Kingdom

  A national bus campaign used a deliberately teasing message to communicate the company's travel business through outdoor advertising.

  Outcome. The message was later developed into a related bus-advertising campaign.

  Source
• 2012Thomas Cook free-holiday promotion

  United Kingdom

  Lowcostholidays offered a free holiday to a person named Thomas Cook after he reported difficulty securing a holiday from the travel company sharing his name.

  Outcome. The recipient was provided with a holiday to Kos, Greece, although the company later decided not to pursue further publicity around the trip.

  Source
• 2011First Lowcostholidays television campaign

  United Kingdom

  The company launched its first television advertisement, created by MPG Media Contacts, to build awareness of the online holiday brand.

  Outcome. The campaign established television as part of the brand's marketing mix.

  Source

• 2016

  Enter administrationOther

  Background

  The business faced what was described as a turbulent financial environment and weak turnover around the UK's Brexit referendum.

  Action taken

  Lowcostholidays entered administration on 15 July 2016.

  Aftermath

  Smith & Williamson administered the collapse while approximately 27,000 customers were abroad and about 110,000 had future bookings.

  Source

• 2014

  Expand international operating officesStrategy

  Background

  After establishing multiple localized websites, the group continued building an international operating footprint.

  Action taken

  Lowcostholidays opened offices in Atlanta and Sydney.

  Aftermath

  The expansion increased the brand's geographic reach before the business failed in 2016.

  Source

• 2013

  Centralize operations in SpainStrategy

  Background

  The company sought to simplify its organization and reduce duplicated operating costs as it expanded across several national markets.

  Action taken

  Lowcostholidays moved its core business from the United Kingdom to Palma de Mallorca and used a single trading entity for holiday sales.

  Aftermath

  The relocation changed the regulatory protection attached to some UK bookings and preceded the company's eventual collapse in 2016.

  Source

• 2013

  Launch targeted and opaque-price holiday productsProduct launch

  Background

  The brand sought to broaden its value proposition and reach customer groups with specific affordability concerns.

  Action taken

  It launched Single Parent Holidays and Secret Hotels, combining targeted discounts with undisclosed-hotel pricing.

  Aftermath

  Both offers became part of the company's promotional and product-marketing activity.

  Source

• 2014

  Lowcostholidays opens offices in Atlanta and Sydney[1]Lowcostholidaysen.wikipedia.org

  Other

  The group expanded its international operating footprint by opening offices in the United States and Australia.

• 2013

  Lowcostholidays relocates its core business to Palma de Mallorca[1]Lowcostholidaysen.wikipedia.org

  Other

  The brand moved its main business from the United Kingdom to Spain and described the change as a centralization intended to simplify operations and achieve efficiency savings.

• 2013

  Lowcostholidays launches single-parent and Secret Hotels offers[1]Lowcostholidaysen.wikipedia.org

  Product launch

  The company introduced discounted selected-hotel rates for single parents traveling with children and launched Secret Hotels, through which customers booked discounted beach breaks without initially being told the property's identity.

1. 1Lowcostholidaysen.wikipedia.org