When checking why sales were not converting through Xcapewithus this afternoon, I was met with the following announcement on their site:

We regret to inform you that XcapeWithUs.com has ceased trading as of 30 April 2009.

If you have a confirmed booking and we have your email address you will receive an email shortly explaining what steps you can take.

If your arrival date is 30 April 2009 or 1 May 2009 please email: customersupport@xcapewithus.com with full contact details including your reference number.

I was shocked and appalled. Let me explain why… Xcapewithus owes sletoh.com money in commission payments. Worse still, on behalf of diytravel.co.uk I paid Xcape £5400 this month for future bookings. Since I had formed a seemingly good relationship with their team (Wayne Purdham, Joe Cale and Carrie) I did not question paying by debit card and bank transfer. When I received a reminder to pay up on April 7th for a £3791 booking with arrival in June I saw no problem.

When I look back at the pricing offered by Xcapewithus over the past 3 months they have been undercutting market leaders like Alpharooms and GTAhotels significantly. The undercut prices were not in a destination here and a hotel there but instead across all countries and hotels. To do this it takes either:

  • A very powerful brand with deep pockets and big buying power;
  • The directors to decide to get as much cash into the company bank accounts as quickly as possible to meet some big bills.

I believe that second is the most likely. Xcape introduced bank transfer payments in March – this is the best way for a company to get money into their accounts instantly and without it going into any credit card processing company holding accounts. This is the type of move a company might make when needing cash quickly. I don’t know of any other company that accepts payment this way.

I have sent emails, Skype messages and telephoned the Xcapewithus team all day but to no avail.

Sadly there are now approx 10,000 customers and numerous business partners affected by the collapse of Xcapewithus. I hope there are not too many like us who have (1) lost their commissions or (2) did not pay by credit card.

I know from first hand experience the hardships involved when a company faces financial difficulties. As Managing Director you have to face and make hard decisions including cutting your own salary, selling off assets, laying off staff and re-thinking the entire business model. I hope that Xcapewithus Managing Director Andrew Miles did his best for the company and acted in its best interests at all times. It is too easy for UK company directors to mis-manage company affairs, liquidate a company and slither away to set up a new company in a different name.

I hope that Xcapewithus managing director Andrew Miles, my Xcape contact Wayne Purdham and accountants A C Photi & Co  respond to this post.

Ben Jackson