Holiday Collapses Prompt AA Travel Cover

Over the past year, more than 50 holiday firms have collapsed dashing travel plans for thousands and leaving others to pay for extra flights home. So how do you know if you are protected?

Travel agents and operators selling package holidays that include the flight with other travel components (such as transfers or hotel) should provide the traveller with Air Travel Organisers' Licence (ATOL) protection or similar.

But what if you prefer to book your own separate holiday components such as flight, hotel or car hire? Doing this online is really easy and there are some amazing bargains to be had.


But, as Christian Young, director of AA Travel Insurance, explains: "if you decide to build your own holiday you may have little or no protection in the event of a company failure. The same applies if you are travelling on business, nipping away for a weekend city break or driving in Europe."

So AA Travel Insurance now includes up to £5k financial failure protection, whihc means that travellers are now automatically covered for financial failure of the firms they book through. What's more, it is included on every AA Travel Insurance policy for no extra premium.

As Young says: "Few travel insurers offer this type of cover as standard or sell it as an add-on, while others restrict cover to just scheduled airline failure.

"AA Travel Insurance covers all suppliers of separate travel components including airlines; accommodation suppliers (such as hotel companies and villa owners); car hire companies; ferry operators; excursion organisers and theme parks.

"Many travellers believe they are fully protected when taking a holiday, either through their insurance, credit card or travel compensation schemes. But the truth is that cover is often incomplete, patchy and the claims process can be long-winded."

Details of cover

AA Travel Insurance now includes financial failure holiday protection automatically, protecting against the insolvency of any travel or accommodation supplier up to a maximum of £5,000 per person and where ATOL or similar cover doesn't apply.

The cover is provided by International Passenger Protection Limited (IPP), world-wide leaders in financial failure insurance with over 20 years experience in providing this specialist cover.

All single trip and annual multi-trip policies bought by telephone or online now include financial failure holiday protection. For full information visit or call 0845 092 1729.