Consumer group CHOICE recently published an article that points out that your money may not be secure if your travel agent isn’t.
Titled, Protect your holiday savings when using a travel agent, the report bluntly states “as it stands, there is no travel insurance policy that covers the collapse of a travel agent.”
The most recent travel insurance review claims that less than a third of insurers provide cover, albeit limited, for the insolvency of a travel services provider, such as an airline, hotel, bus, or car rental agency, none currently cover the collapse of a travel agent.
The reliability of travel agents is under increased scrutiny after CTS Travel Services in Melbourne went under, leaving consumers high and dry and owing thousands of dollars that the customers may never see again.
Pointing out that consumers are often surprised to find out that travel insurance doesn’t cover the collapse of a travel agent, CHOICE reports that “some travellers are out of pocket thousands of dollars following the collapse of three travel agents so far this year.”
So what can you do to make sure your holiday booking is safe? CHOICE suggests there are two actions to take if your travel agent goes belly-up however, as with most things in life, the best protection is precaution.
Credit card chargebacks and the Travel Compensation Fund can both help, but the safest option is to ensure you ask your travel agent if it has consumer protections in place, such as insolvency insurance, to protect you if it goes broke.
You can find out more about the report at CHOICE.
