Despite the current economical crisis, a number of publications have revealed the importance of travelling abroad with a vast majority of Brits revealing that they are intending to travel abroad this year regardless of their financial situation.

According to a survey by the travel operator TUI, the same number of holidaymakers who had previously booked with their travel brands last year intend to book another holiday this year.

Opting for cheaper deals

However, to bring costs down a little, studies show that there has been a nine per cent increase the number of holidaymakers that are planning to opt for a package holiday- that’s 94 per cent of holidaymakers planning to buy a package deal in 2009.

Chris Armond, BLM Horizon business director, said: “The effects of the recession combined with the collapse of several airlines and the travel giant XL means consumers are more reluctant to commit in advance to big purchases such as holidays, although they still intend to take a holiday.

Travel companies that offer protection and inclusive deals may benefit at the expense of those who don’t. Holiday-bookers may also be anticipating further last minute price cuts and are holding off for late deals.”

Neglecting your insurance

Yet, according to a recent study by American Express, 24 per cent of Brits have considered neglecting travel insurance as a bid to cut costs during the financial crisis.

Chris Rolland, head of insurance services at American Express, warned that many Brits are thinking of foregoing policies that were "designed to protect them during hard times" to save money.

"This may well be a false economy as people could end up paying out much more than they bargained for if something should happen," he warned.

With the rising cost in medical fees and the further fall of the economy leading to a number of airlines struggling to stay afloat, more insurers have warned Brits of the importance of travel insurance.

International manager, Natasha Heasman of Bupa Travel said that the insurance is “vitally important” for those who are taking a trip abroad due to the “rising cost of medical fees overseas.”

She said: "You wouldn't want to be travelling, for business or leisure and not have the relevant cover…You could be looking at a bill for £40,000 upwards for treatment and that's just the medical treatment, not getting you home either."

Last year, hundreds of British holidaymakers were left stranded out of Britain because of collapsed airlines as a result of the economical downturn.

Adam White, Bath Business Travel's managing director said: "A total of 32 airlines collapsed last year leaving passengers stranded and facing expensive repatriation costs…The industry has already seen one airline collapse this year and as the recession deepens there will no doubt be more."

It is therefore vital for holidaymakers looking to save money, to ensure they purchase adequate travel insurance, unless of course they would like to face a number of costs which could land them in serious debt.