21 January 2010

UK Based Apartments Abroad Goes Belly Up - Market Too Crowded or Too Soft?

UK accommodation specialist Apartments Abroad has gone into voluntary liquidation today.

This sad situation should give pause to thought that the somewhat rosy picture that has been painted about the homes rental market may not be quite so wonderful after all.

With the very high valuation price placed on such online sites as Home and Away - some investors will be getting a little nervous that the space is a little crowded.

The UK market managed in the main to survive the downturn with two notable bankruptcies XL Airways in 2008 and FlyGlobespan in 2009 - both linked to the credit card clearer eClear itself now wound up after it couldn't produce the cash it was allegedly holding for clients who had paid for trips on these two airlines.

So clearly the market needs to be looking carefully at some of the risk factors associated with Travel based businesses.


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