DIY deals are top for internet savvy Brits

British holiday-makers are choosing cheaper prices and increased choice over the traditional package holiday; but the decline of the travel agent and rise of the internet and budget airlines is pushing the limits of existing insurance policies.

Research released today by M&S Money reveals that the surge in internet usage - two thirds of households now have a fast broadband connection - and the huge variety of holidays available on internet travel sites has led 50% of online Brits to choose to book holidays independently.

The fastest growing reason for trips abroad is visiting friends and family, accounting for 17% of trips: greatly reducing the need for a packaged, all encompassing holiday and increasing the likelihood of us booking a series of flights individually. As many as 78% of those with internet access use it to research holiday costs and destinations and, with over 70 million trips taken last year, holidays are still big business.

M&S Money research revealed that 29% of us are booking each element of our holiday individually. The downside of this is that no one holds overall responsibility for any one trip and, in the absence of a travel rep, ‘DIY' bookers are on their own.

This move away from the travel agent booked package has blurred the lines of responsibility and highlighted the increasing risk of individuals not being covered by their travel insurance policy. Traditionally, if an international flight was cancelled or delayed causing a traveller to miss a later journey, the agent would organise alternative arrangements. However a series of flights booked separately would not all be covered by one operator or travel insurance policy; most would only cover the initial international flight.

M&S Money found that 35% of UK travellers encountered a cancellation or delayed departure during their last trip and of these as many as 21% of those who encountered these sorts of problems whilst travelling independently, found they were not covered at all for the problems they faced.

This is because traditional insurance policies cover holiday-makers in the event of a delay, usually in excess of 12 hours, but often do not cover a cancellation and its effect on the subsequent travel and accommodation. Were the traveller to have booked with a tour operator they would find them another flight or refund their money, however travelling independently you must sort yourself out!

The problems associated with this were illustrated by the recent launch of Heathrow Terminal Five. Many travellers found that in the event of the cancellation of their original outgoing flight, if they were unable to meet their subsequent connection booked through another airline they had to purchase a further flight at their own expense.

An alarming 12% admitted that they had not taken out any sort of travel insurance at all last time they went abroad.

M&S Money has identified these changes in the market and worked closely with AXA Insurance to enhance the M&S Travel Insurance policy to ensure that travellers who book holidays independently of a tour operator are covered if their flights are cancelled and if other elements of their holidays are affected.

Brendan Cook, M&S Money Chief executive, comments: "At M&S Money we are constantly working to offer policies that suit the needs of our customers and as independent travel has grown we have identified changes in how they travel and book holidays. This has changed what they need from travel insurance.

"The new Independent Traveller cover should help to protect the modern holiday maker against financial loss in the absence of a travel agent to help them in an emergency."

For more information about the Independent Traveller Insurance or to get a quote consumers should visit marksandspencer.com/money.