Travellers advised to be cautious following Globespan collapse

Following the collapse of Globespan on December 16, HolidayExtras.com, the UK market leader in travel add-ons, has highlighted the importance of checking that travel insurance policies feature adequate cover for financial failures.

An estimated three-quarters of Globespan's customers booked their ticket directly via the airline's website. These bookings fell outside the government's ATOL scheme which protects travel arrangements sold as packages as opposed to individual component bookings. Those trips not protected by ATOL are covered instead by travel insurance providers who provide financial failure cover on their retail travel insurance policies. 

Andrea Clayton, head of insurance at HolidayExtras.com, said: "Many travellers will be unaware that they are not covered in instances of airline collapse. The failure of Globespan accentuates the need for travellers to be adequately covered. All insurance policies bought directly from HolidayExtras.com include End Supplier Failure Cover free of charge. This cover is underwritten by International Passenger Protection Limited, the worldwide leader in travel financial failure.

"What this means is that End Supplier Financial Failure cover is included. Should an airline, such as Globespan, go bust, those with End Supplier Failure cover, who haven't bought the holiday as part of a package, will be able to recover the cost of their flight or the cost of replacement flights. By including such cover, we at HolidayExtras.com aim to make a stressful time for travellers less so."

Travel insurance with HolidayExtras.com including End Supplier Financial Failure cover starts from as little as £10 per person, based on one week in Europe. Visit holidayextras.co.uk/holiday-insurance for details.