Credit crunch gives Brits the holiday blues

A holiday should be an escape from the stresses and strains of everyday life, but it appears there is no break from the credit crunch, according to new research.

A survey of more than 1,000 UK adults by greenbee.com - the financial and leisure services arm of the John Lewis Partnership - has revealed that for more than a third (34%) of Brits, the key holiday concern is the potential collapse of their travel operator (17%) or getting a poor exchange rate (17%).

Surprisingly, despite recent airport mishaps, only 8% of British holidaymakers rate lost luggage as their biggest concern, ranking it below travel delays (12%), being a victim of holiday crime (9%) and an overseas accident or personal injury (9%).

However despite worries over holiday horrors, more than a third (36%) of Brits don’t consider travel insurance to be an essential requirement. Almost a quarter (24%) of those surveyed only buy travel insurance occasionally, with just over one in 10 (12%) saying they never purchase it.

Scots are the least likely to be concerned about a poor exchange rate, with just 11% naming this a key worry, almost half that of people in the South East and London (20%).

However Scots are the most concerned about travel operators collapsing, with almost a quarter (23%) naming this their top fear, compared to just 13% of Midlanders.

Just over one in 10 (11%) of Midlanders are most concerned about being a victim of crime, almost three times that of the Welsh (4%) - but are also the travellers most likely not to buy insurance for every trip (43%).

Over a fifth (22%) of 18-24 year olds and 16% of those aged 35-44 never buy travel insurance when they go on holiday, well above the national average of 12%.

James Furse, managing director, greenbee.com said: “It’s clear that the weakening pound is front of mind for most people in these difficult economic times. Buying holidays using a credit card may give those with money concerns some comfort - and protection - in the event of a travel operator going bankrupt.

“In these tougher times people may be tempted to forego travel insurance to save money. However if the worst happens on your overseas break and you’re not insured, you could potentially be left with a hefty bill running into hundreds or thousands of pounds. Travel insurance should be seen as a holiday essential rather than an unnecessary expense.”

For further information on Greenbee Travel Insurance, visit greenbee.com