Apr 16, 2009 - 03:04 PM

By Jeff Hayward

DURHAM -- An unexpected announcement from a major vacation package company had Durham travel agents scrambling to rebook their clients Wednesday.

On April 15, Conquest Vacations posted notification on its website, conquestvacations.com, the company is ceasing operations immediately, leaving travel agents in Durham to field countless calls from clients looking to rebook. But package prices through other vacation companies are increasing since the Conquest closing, according to agents.

The sudden shutdown, according to the site, is "a result of overcapacity and price war among the major tour operators, unrealistic and unreasonable demands by the credit card processing companies, credit squeeze and economic turmoil in recent months making it impossible for companies like Conquest to continue in business even after weathering many storms over the past 37 years."

Jan Filinski, consultant at SOHO Travel Corporation in Ajax, was pleased to report the company's only customers booked through Conquest aren't set to leave for another month-and-a-half. Since the company operates under The Travel Industry Council of Ontario (TICO), those customers will be covered.

"They will have no problem," she said, adding that's another story for those who book through online agencies.

Ms. Filinski hasn't yet noticed a rise in other travel operators' prices, but wouldn't be surprised if that happens.

"It's all supply and demand," she said. "That probably will happen. At this point, there hasn't been substantial evidence of that."

Alfred Massardo, manager of Collins Travel American Express Travel Services in Pickering, said none of the company's customers are stranded as a result of Conquest's closure.

"We haven't been affected that much," he said, adding Collins Travel is also part of TICO.

He's noticed other travel operators working together to resolve the problem.

"The other tour operators are dealing with problems and trying to get the people back here," he said.

Meanwhile, Tracy Mogk, manager and owner of Getaway Travel on Brock Street in Uxbridge, was busy rebooking clients on the phone just after learning about the closing. She said because her customers booked through a registered travel agent and not a fly-by-night online vacation vendor, they will be protected as far as a refund.

Her business pays into a travel compensation fund to protect clients in these cases, she said.

But another negative spinoff from the Conquest closing is that other package vacation operators are jacking up their prices.

"The prices are going up by the minute," said Ms. Mogk.

Not to mention, her business is now out "thousands" of dollars in commissions owed by Conquest, she noted.

Meanwhile, at Breakaway Travel on Taunton Road in Oshawa, agent Penny Smith-Akerman was also busy on the phones. "They're ringing off the hook," said Ms. Smith-Akerman.

She said the agency was also being proactive in calling customers to inform them of the Conquest situation to give them an opportunity to rebook.

There was very little warning the tour giant was planning on shutting down, she said.

"It's frustrating... (but) I feel bad for Conquest, they've been in business for so long."

She acknowledged other vacation companies are now raising their prices, but added, "prices have been low for a really long time."

The Breakaway agent also reassured that customers who booked through that agency are protected.

-- With files from Kristen Calis