Travel Insurance - Travel firm’s collapse ruins holiday plans - 20/04/2009

Less than a year after the collapse of XL, which spoiled the travel plans of many holidaymakers in the UK, hundreds of passengers are also facing a similar travail following the demise of a travel company.

A report claimed that about 2,600 separate bookings were made with Freedom Direct, which closed down last week.

The collapse of the Newcastle-based firm has also led to the loss of 109 jobs and many travellers are worried about their cancelled trips and hoping for a way of getting a refund.

Up until now, many of those affected by the XL demise have yet to get a refund as it was still unclear whose responsibility it was to pay them, especially regarding those who booked their holidays with credit cards.

In the case of Freedom Direct’s customers report said accountants were considering available options, including selling on the tours to other travel agencies.

This will allow customers still proceed on their holidays as planned.

Meanwhile, as summer draws closer experts are reminding travelers booking their holidays to make sure they take out travel insurance so as to be adequately covered in case things fail to go as planned.

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