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Report - Prestige Travel Bankruptcy Could Threaten Las Vegas ShowsOctober 24, 2012 By: Adam Leposa
Vegas Inc. reports that Prestige Travel has filed for bankruptcy in a move that could threaten many smaller shows on the Las Vegas Strip.
While a spokesperson declined to comment on the status of Prestige’s TripRes.com subsidiary, two sources have told Vegas Inc. that the site, which books many Vegas activities, was shutting down. A TripRes shutdown could threaten money owed to producers of many Las Vegas shows.
“What happens is they sell tickets directly to the customer, charge a service fee and keep their commission, which is pretty high,” David Saxe, founder of David Saxe Productions, tells Vegas Inc. “They pay the producer later for the tickets they have sold. But after waiting 45, 60 days to be paid, I could tell there was a problem. They told me I would get a check on Monday. I didn’t get it and then got a call this morning that they are closing down and filing for bankruptcy.” Many small Vegas shows may be forced to close due to the lost revenue, Saxe continues.
"Prestige Travel did file for protection under Chapter 11 of the Bankruptcy Code today,” says President of TripRes.com and head of Prestige Travel Leo Falkensammer in a statement. “The nine Prestige Travel cruise and vacation offices are all open and will continue to provide the best vacation planning and booking services as we always have since 1980. The online division, that books hotels and shows, is working with both the hotels and its lenders to do what it can to make sure travelers' reservations are honored."
Read the Vegas Inc. story here.