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Last Monday, California-based Happy Vacations announced that it is ceasing all current operations to "reorganize" its company structure after weeks of speculation regarding the tour operator’s financial health. A week earlier, the company had said it needed to wait until April 27 to receive more capital in order to pay its suppliers and travel agents.
In a release posted on its Web site, Happy Vacations president David Marshall wrote, "[Happy Vacations] has some viable components that are less affected by these very difficult economic times, and we will build on these to emerge from reorganization as a stronger company. After 40 years in the business, we at Happy Vacations are heart-broken about the turn of events and our difficult decision to disrupt our current operations. We truly appreciate the support and concern from our travel agency and vendor partners. We apologize for any disruption, inconvenience or losses."
The company, which was not a member of the United States Tour Operator Association, also noted that it is working with other travel providers to protect as many travelers as possible and will continue to distribute information. Happy Vacations has also advised agents to take immediate action to ensure their clients’ trips are not disrupted.
Numerous tour operators, including Blue Sky Tours, Classic Vacations, Funjet Vacations, Gogo Worldwide Vacations, Travel Impressions and United Vacations have pledged to help customers affected by Happy Vacations’ cessation of current operations. Funjet, for example, is offering up to $225 in savings for clients rebooked on flight and hotel and/or hotel-only packages to Hawaii, Mexico and the Caribbean through May 8 for travel through Dec. 31, 2010.
Happy Vacations noted that any future developments would be posted on its Web site.www.happyvacations.com