February 25, 2010
-
News: Go Travel South Closes Doors; Blames CC Processor
On Wednesday evening, Go Travel South, the popular Canadian travel company posted a notice on its web site that the company was closing its doors due to "economic circumstances." The notice instructed customers to contact their credit card companies for any refund due. The company's founder, Hugh Boyle, said Go Travel blamed its credit card processor for the fall of the Halifax based travel company. Boyle said the company's credit card processor recently filed for bankruptcy and still owned it over a million dollars from card processing.
Flair Air Ltd., is the airline that provided Go Travel South with services for its travel packages, told credit card customers that they would fly home any individuals who had already flown out on vacation; however, all future reservations made through Go Travel would be cancelled. The company has been plague with problems for some time now as the Travel Industry Council of Ontario observed that the company was having difficulty meeting its financial responsibilities while located in Ottawa. Under pressure from the watchful eye, Boyle took his company and moved to Halifax where regulations were more relaxed. Michael Pepper, President of the Council advises credit card customers to check on their travel agent's jurisdiction to learn which regulations apply to them prior to making any travel purchases.
Boyle had difficulty keeping his previous business above water as well. His budge airline, Zoom, folded over a year and a half ago. According to Pepper, protection isn't granted to travelers using their debit or credit card by the federal agency; such protection is given by each individual jurisdiction. Currently only Ontario, Quebec, and British Columbia have travel industry regulating acts on their books. Pepper hopes to see nationwide regulations protecting all Canadians to soon become a reality. Boyle denied that his decision to move the company from Ottawa to Halifax had anything to do with regulations.