Beware of bargain holidays

[March 20th 2008]

A travel insurance specialist is warning about the dangers of buying cheap holidays.

Recent news stories about overseas holidays going on sale for as little as 84p per night may be encouraging people to get on the phone and make a booking. But travel insurance company Insurefor.com says that holidaymakers need to be wary.

“On the face of it these holidays look like amazing bargains for travellers, but before booking we are asking people to think about why the holidays are so cheap,” says Insurefor.com managing director, Antony Martin.

“The likelihood is the operator, hotel or airline is in trouble after failing to sell the amount of holidays required to keep them profitable. This means that holidaymakers could end up booking or even travelling with a company and finding themselves stranded if the company then goes bust!,” Martin suggests.

Insurefor.com was one of the first UK based insurers to launch Supplier Failure Cover, a product which protects clients in the event of a travel company or airline ceasing to trade.

Travellers who take out a standard policy with Insurefor.com are automatically covered, or the company’s Supplier Failure Cover can bought as a stand alone product from just £4.

“We are not telling people not to book the holidays, instead we are warning them to take the appropriate cover, and we mean more than simply relying on ABTA/ATOL bonding or the goodwill of a credit card issuer,” continues Martin.

“Holidaymakers need to ensure they have comprehensive travel insurance. We are urging people to read the small print and ensure that their policies cover operator, hotel and airline failure,” he continues.

The UK boss of leading tour operator Thomson, Dermot Blastland, has predicted: “One million people will be affected by their travel provider going bust.”

Insurefor.com boss Antony Martin warns: “Don’t be one of the ones who is ineligible to make a claim!”.

Written by: Nick Purdom

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