While the modern tourism market has multiple agencies that arrange travel for groups or certain types of niche clients, it is not particularly easy to stay in business as a travel agency these days.
The high cost of air travel and ease of booking flights and hotels on one’s own online have created a double-whammy for many independent tour organizers that have had to shut down in the last year.
These include Iceland’s Tango Travel, British firms Vegas Vacations and Great Little Escapes and, most recently, Boston-based Go Play Tour Sports. In July 2025, Hungarian tour organizer Unitravel Kft was declared bankrupt and had to cancel dozens of tours to southern European countries such as Greece, Croatia and Spain. The company, which at one point was among the biggest in the country, blamed its collapse on “new, foreign companies enter[ing] Hungary with huge financial resources.”
Travel Teachers loses operating license, travelers seeking refunds
Another Budapest-based travel agency, Travel Teachers Kft, has become the latest to collapse after local regulators revoked its operating license on April 30.
The company sold Hungarians tours to nearby European countries and, as is being reported by local press, at least 400 customers who are either already on tours or have travel booked in the coming months are immediately affected.
Related: Another luxury travel company declares bankruptcy, cancels all trips
The firm has not put out a statement on its abrupt shutdown and took down the Facebook page and website that it used to advertise its services. Prior to the shutdown, passengers reported receiving an email from the owner managing director saying that the revoked license means that it is unable to operate any flights past the spring.
As rumors that the company was shutting down started to spread on social media, many also started canceling trips. The loss in customer trust and revenue ended up dealing an additional blow in the full shutdown.
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How to get a refund if a travel company collapses, what to do
With all trips now canceled and the company not responding to requests, customers with booked travel are stuck in a limbo where the Budapest Government Office has not yet authorized the Travel Teachers’ insurer to start giving out refunds while the agency had earlier been redirecting travelers to the government.
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The Budapest Government Office put out a statement saying that it has not received official documentation that the company is insolvent and unable to pay refunds; with the insolvency process not officially kicked off, travelers are asked to hold tight until the company either declares itself or is declared insolvent.
Travel companies that went bankrupt in recent months:
- Great Little Escapes: The British travel company filed for bankruptcy after running up losses of £77,000 ($103,000 USD).
- Unitravel Kft: The Budapest-based tour operator blamed “new, foreign companies enter[ing] Hungary with huge financial resources” for a financial breakdown that led to it having to suddenly cancel trips that in some cases were already halfway through.
- MixxTravel: The Malmö-based travel company was forced to cancel trips and wind down operations after being declared bankrupt by a judge in August 2025.
- Tango Travel: The Icelandic tour operator went bust in November 2025 after major partner Play Airlines filed for bankruptcy and stopped operations a month earlier as many of the packages it sold included tickets from the defunct airline.
- New Era Travel: Ceased operations in November 2025: The Hampshire-based tour operator took British travelers to Spain, Australia, and Las Vegas among other popular holiday destinations.
Related: Another airline shut down after losing license
