Many people are more likely to buy travel insurance as a result of the recent airline collapses, new research has shown.
The high-profile failures of airlines such as Zoom and XL have made holidaymakers keener on travel insurance, a new study has found.
As the global economic downturn took hold in 2008, many flight operators found themselves in trouble. People are less likely to spend money on trips when funds are tight, while the year also saw record oil prices raise the cost of airline fuel.
One knock-on effect of the large amount of publicity these events received is that the need for travel insurance has been highlighted, add-ons provider Holiday Extras explained. Its study found that more than one in three people said they were now more likely to book protection as a result, although the figure was just one in five for the 18 to 24-year-old age bracket.
However, nearly two thirds of the holiday makers they spoke to said they would not know how to proceed if their operator went bust while they were abroad. Richard Cohen, a financial planner from firm, warned: "If you book your flight directly with the airline or book accommodation-only, there is no legal requirement for your money to be protected.
"If you paid by credit card, like Visa, you might be protected by Section 75 of the Consumer Credit Act 1974. It may be possible to take out Scheduled Airline Failure Insurance before you fly," he added.
