Aashna Shroff, personal finance expert at money.co.uk, comments:

"Holidaymakers will understandably be concerned about the plight of Thomas Cook, but it doesn't need to wreck your holiday as long as you ensure you have the right protection in place.

"Even if your airline or holiday provider is ATOL protected, it is always recommended that you have comprehensive travel insurance as well before heading off on your well-deserved vacation.

"ATOL protection will cover your flights, accommodation and car hire if they were part of a package deal, but it won't cover incidentals such as meals and taxis.

"Also, if you only paid for the flight through a holiday provider like Thomas Cook and they go bust while you're away, you won't necessarily be covered for accommodation and car hire costs.

"You will need to check if your service provider has ATOL protection, otherwise it will be your responsibility.

"And if thousands are people are trying to get home and there aren't any available seats for several days, those costs could quickly mount up.

"Comprehensive travel insurance should cover these costs, but check the small-print first because not all policies will include end-supplier failure, which covers you in the event that a travel company stops operating."