The failure of firms such as Zoom highlights a potential underinsurance problem.
Britons remain vulnerable to their tour operator or air carrier going bust - as they are not covered for this event by most travel insurance policies.
This is the stark warning delivered today by the Association of British Insurers (ABI), an umbrella group for insurance providers. An expert at the organisation pointed out that "cancellation" was covered for by standard travel insurance packages - but that this generally includes unspecified events such as the policyholder facing sudden illness, jury service or losing his or her job.
The issue of holiday firms and airlines collapsing has been brought to the fore by the recent economic downturn, which has led to businesses undergoing a round of belt-tightening. Moreover, two low-cost UK airlines, Zoom and XL, have gone bust recently due to being unable to meet their costs.
In total, 24 air carriers have gone out of business so far in 2008 - pointing to deep trouble in the aviation industry. Fuel costs have gone up thanks to record oil prices, while the capacity of customers to spend big on long-haul holidays has also been stymied by the credit crunch and rising inflation.
Malcolm Tarling, a spokesperson for the Association of British Insurers, advised: "Most, but not all, standard package travel policies [both annual and single trip] do not cover failure of tour operator or air carrier. Typically, cancellation is covered when specified events occur, such as illness of yourself or a close relative, jury service or being made redundant."
He added: "It's not easy [for customers to protect themselves without travel insurance], but booking by credit card with an ATOL-bonded provider will at least mean that should the worst happen then you will get compensation."
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