In a world where customers can book almost any trip themselves online, several charter bus operators and companies selling organized bus travel have shut down this year.
One such brand is Sunshine Tours, a longtime Virginia staple that cited the “rising cost of fuel, lodging, and overall tour expenses, along with the decline in passenger counts” as the primary reason it had to wind down operations in September 2026 after nearly 45 years in business.
In Tennessee, 68-year-old Knoxville Tours also abruptly canceled scheduled trips at the end of September, leaving customers struggling for communication and refunds, local outlet 6 News reported.
Knoxville Tours, operating since 1958, abruptly cancels dozens of bus trips
Operating continuously since 1958, Knoxville Tours advertised chartered bus rides, organized vacation packages, and tours by motorcoach as part of the services it sells to local travelers.
“Knoxville Tours has travelled millions of miles and brought the joy of travel to thousands of satisfied customers,” the company writes on its website. “Some travelers have been on as many as 30, 40 and even 50 tours over the years.”
Related: Another travel company strands travelers with no refunds offered
According to 6 News, dozens of buses typically used by the company have remained parked in a lot in North Knoxville over the last three weeks.
Betty Zaccone and Marty Fabian, two local Knoxville residents who booked a 13-day trip to Colorado and New Mexico with Knoxville Tours, reported paying $7,750 and then receiving a phone call telling them that the trip was canceled two days before its scheduled start date.
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“I don’t know what is going to happen now,” Fabian told 6 News. “We are going to make out a police report. We checked with our credit card company.” Other residents described similar experiences for trips booked into September and October.
After local media drew attention to the situation, Knoxville Tours released a statement saying that it was “still in business, and […has] not closed” while asking customers for patience while it works through an issue with its insurance company.
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“Staff shortage and challenges”: Knoxville Tours on canceled bus tours
“We understand how unsettling it can be when you’re trying to reach a business you know and trust, and can’t get through,” the company writes in its statement.
“We’ve been dealing with some internal updates, staff shortage and challenges, with the main issue being an unexpected bus insurance situation.”
These travel agencies filed for bankruptcy in 2026:
- AVG Travels: The Melbourne-based travel agency selling cheap vacation packages to travelers in Australia and New Zealand sent more than 200 customers an email saying that the trips were canceled before entering bankruptcy in May 2026.
- GoPlay Sports: In April 2026, the men’s basketball team of the University of Dallas was left without a planned trip to compete in the United Kingdom after Boston-based GoPlay Sports Tours LLC accepted two payments of $30,000 and then went unreachable.
- Havantur: The agency was forced to shut down its main European office in France at the beginning of 2026 after tourist numbers to the Caribbean country plummeted due to U.S. military actions in Venezuela and threats against the country.
- Vegas Vacations and North America Destinations: The two travel agencies in the Canadian province of British Columbia were shut down by regulators within a few days of each other in January 2026 after multiple travelers complained of buying trips and receiving invalid plane tickets and hotel bookings.
The Knoxville Tours statement does not address the issue of customers who put down or fully paid for a trip that did not take place and whether it will be providing refunds.
A representative of the local Better Business Bureau branch confirmed that the consumer protection agency has received multiple complaints about the company.
Related: Another travel company ordered to close in bankruptcy, cancels all trips
