Stop worrying about travel-firm failures, just get insurance

Travel industry executive reiterates the importance of travel insurance.

Travel Insurance News - 02/08/2010

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It’s a story the news loves to trot out with seasonal glee. Every year, we see accounts in the media of large numbers of travellers stranded, disappointed, or even both, after a large tour operator, airline or similar organization has gone belly up in the middle of a holiday season. This year, travellers appear to face increased risks in this regard. A combination of global economic depression, high operating costs and several disastrous events like SARS and the volcanic dust have put immense pressure on virtually all players in the global tourism and travel industries.

Travellers need have no fear of the perceived risk of travel companies failing, however. As the co-founded and Business Director of Skyscanner, Barry Smith, points out, as long as travellers ensure they have adequate insurance cover, there really is little point in them trying to figure out the likelihood that their holiday company, airline or travel agency will go out of business. The travel insurance should protect them against any losses and, besides, the reality is that only a small number of companies fail in this manner.

Mr Smith was speaking following the release of a travel survey showing that price remains the single most important consideration for people shopping for holidays. Of the more than 500 people who took part in the survey, 47% said they shopped primarily on price. Another 22% said an airline’s reputation and reliability regarding comfort and safety was the most important consideration for them.

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